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Franked Dividends

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Are franking credits back in Labor's sights?

A recent Treasury Department statement on tax spending includes franking credits, which may be coincidence or something more ominous. Here's why the Labor Government shouldn't target franked credits to raise revenue.

After-tax returns and the value of franking credits

The market often does not fully recognise the value of franking credits held in some companies, and investors should know the after-tax returns achieved on their investments for more accurate view of returns.

The danger in Labor's new franking credit proposal

Listed companies often raise capital around the same time they pay dividends and return capital to shareholders, but proposed legislation may prevent companies paying franked dividends during a capital funding.

Let's make this clear again ... franking credits are fair

Critics of franking credits are missing the main point. The taxable income of shareholders/taxpayers must also include the company tax previously paid to the ATO before the dividend was distributed. It is fair.

7 strategies to manage a loss of franking

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.

Labor's franking policy is a ticking bomb for all super funds

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.

Tax on so-called 'super rich' could prove costly

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.

SMSFs, member-direct and Labor's franking

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.

Let’s get the numbers right on imputation

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.

Tax and the financial planning process

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.

Caveat Emptor: LICs versus ETFs

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.

An SMSF inequity that cries out for attention

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.

Most viewed in recent weeks

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

9 winning investment strategies

There are many ways to invest in stocks, but some strategies are more effective than others. Here are nine tried and tested investment approaches - choosing one of these can improve your chances of reaching your financial goals.

The rubbery numbers behind super tax concessions

In selling the super tax, Labor has repeated Treasury claims of there being $50 billion in super tax concessions annually, mostly flowing to high-income earners. This figure is vastly overstated.

With markets near record highs, here's what you should do with your portfolio

Markets have weathered geopolitical turmoil, hitting near record highs. Investors face tough decisions on valuations, asset concentration, and strategic portfolio rebalancing for risk control and future returns.

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