Much has been written about Labor’s franking policy, so we bring together a range of possible strategies. It’s likely that even if implemented, it will not be in its current guise, so anyone affected should wait before taking action.
Tag Archives | franked dividends
Labor’s franking proposal could affect many more super funds than expected, not only SMSFs, depending on the allocation to Australian shares, their franking and the percentage of assets in pension phase.
The ALP imputation policy, even with the Pensioner Guarantee, hurts self-funded retirees who are not pensioners. Ten organisations have formed the Alliance for a Fairer Retirement System to oppose the policy.
Labor’s proposal to deny cash refunds of franking credits may become law next year. SMSFs will consider the various alternatives to minimise loss of franking credits, including the use of member-directed investments.
Every day, an expert writes somewhere about the adverse impact of a reduction in franking credits due to a lower company tax rate. This tax rate has no impact on the after-tax returns received by Australian shareholders.
A perfect tax system would not affect how people save and invest, but in practice, there are many ways that Australia’s tax system influences investor behaviour.
We’ve asked two industry professionals to state their cases for and against these two investment types that are growing in popularity: Listed Investment Companies and Exchanged Traded Funds.
It is inequitable for the ATO to require an SMSF to make advance payments of the estimated tax for the year, but not pay refunds in advance based on estimated franking credits.