Franking credits - gone?

Discussion in 'Sharemarket News & Market Analysis' started by Alex McDonald, 13th Mar, 2018.

Join Australia's most dynamic and respected property investment community
Thread Status:
Not open for further replies.
Page 13 of 27
  1. willy1111

    willy1111 Well-Known Member

    Joined:
    16th Jul, 2015
    Posts:
    285
    Location:
    Melbourne
    Good on Wilson for taking the fight to them.

    With more than a million people effected by it, surely he should be able to get a lot more signatures, just a matter of getting the word out there...I guess the publicity should hopefully increase the awareness of the petition and result in more signatures.
     
    Last edited: 28th Sep, 2018
    willy1111, 28th Sep, 2018
    #241
    Parkzilla, Snowball, monk and 2 others like this.
  2. willy1111

    willy1111 Well-Known Member

    Joined:
    16th Jul, 2015
    Posts:
    285
    Location:
    Melbourne
    willy1111, 28th Sep, 2018
    #242
    sharon, Parkzilla, trinity168 and 5 others like this.
  3. Anne11

    Anne11 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    571
    Location:
    Brisbane
    Thank you @willy1111

    One more signature added.
     
    Anne11, 28th Sep, 2018
    #243
    willy1111 likes this.
  4. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,401
    Location:
    Buderim
    Nodrog, 1st Oct, 2018
    #244
    orangestreet and BPhil like this.
  5. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,401
    Location:
    Buderim
    Nodrog, 4th Oct, 2018
    #245
  6. Gestalt

    Gestalt Well-Known Member

    Joined:
    20th May, 2018
    Posts:
    85
    Location:
    Brisbane
    Gestalt, 9th Oct, 2018
    #246
    Parkzilla, Perthguy, orangestreet and 1 other person like this.
  7. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,401
    Location:
    Buderim
    Ain’t this the truth. And no I’m not a die hard conservative having voted for Labor a number of times. But given the most leftist union head in living memory and a huge spending, high taxing populist driven Shorten led Labor I have never felt so pessimistic about Australia’s short to medium term future. I just hope this mentality doesn’t become entrenched long term.
    And it only gets worse when you get idiots like this who want union led Industry Super funds to take this path:

    ALP Senate candidate: Use super funds to force companies to lift wages, pay tax
    Trustees need 'holistic' view of duties
     
    Nodrog, 9th Oct, 2018
    #247
  8. Toilandtrouble

    Toilandtrouble Well-Known Member

    Joined:
    19th Mar, 2017
    Posts:
    137
    Location:
    ACT
    Signed. Sadly I don't see this measure being dropped.
     
    Toilandtrouble, 10th Oct, 2018
    #248
  9. Parkzilla

    Parkzilla Well-Known Member

    Joined:
    2nd Nov, 2015
    Posts:
    138
    Location:
    Brisbane
    Parkzilla, 19th Oct, 2018
    #249
    sharon, oracle, Anne11 and 2 others like this.
  10. qak

    qak Well-Known Member

    Joined:
    1st Jun, 2017
    Posts:
    1,673
    Location:
    Sydney
    Think she's on a winner in that electorate! Malcolm will probably vote for her :p
     
    qak, 19th Oct, 2018
    #250
  11. John Ferguson

    John Ferguson Well-Known Member

    Joined:
    22nd May, 2016
    Posts:
    249
    Location:
    Hobart, Tasmania
    So just to clarify, if Franking credits are abolished.

    Example

    $500k invested in LIC AFIC with 4% dividend = $20k. If fully franked you would receive $8571. Total income $28,571 assuming you are on the lowest tax rate. If you were retired and this was your total income, then you're income would go from $28,571 to $20k not taking into account tax. If held in superfund and over 65 then it would be tax free and if held outside of super then tax would be applicable accordingly.

    Does this sound correct? Is this the kind of impact abolishing franking credits would have on a lot of individuals relying on franking refunds to fund their retirement? And is this how it would effect the beneficiaries within a trust structure also? For example if the portfolio was held in a trust and split between two beneficiaries would they now only receive $10k each instead of the $14k each with franking applied?
     
    John Ferguson, 23rd Oct, 2018
    #251
    Parkzilla and Perthguy like this.
  12. Zenith Chaos

    Zenith Chaos Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    1,678
    Location:
    Sydney
    Yes to all your questions except for the trust structure, where it depends on who is receiving the dividends. If they were on a higher tax rate they could offset the franking credits. Very ****** policy really.
     
    Zenith Chaos, 23rd Oct, 2018
    #252
    John Ferguson likes this.
  13. John Ferguson

    John Ferguson Well-Known Member

    Joined:
    22nd May, 2016
    Posts:
    249
    Location:
    Hobart, Tasmania
    Not a policy
    Terrible policy!
     

    Attached Files:

    John Ferguson, 24th Oct, 2018
    #253
  14. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,401
    Location:
    Buderim
    Nodrog, 27th Oct, 2018
    #254
    oracle, sharon, John Ferguson and 6 others like this.
  15. marty998

    marty998 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    627
    Location:
    Sydney
    Bolded bit is not correct. You would claim your franking credits to the extent there is tax payable on the $28571 income. Net net you probably end up with $20k after tax.

    Overall the investor is worse off than current policy.

    Personally I see a lot of merit in the current imputation system, but with the current budget expenditure settings it is not sustainable for the burden of tax to fall on working people, when everyone over 60 is essentially exempt from income tax if structured correctly (including their lazy trillion+ of pension assets).

    One way or another the base needs to be broadened. I can't see this policy passing the senate (as I've said before). But I think it is a useful conversation starter to highlight the problem of a substantial amount of the country's income that essentially escapes all taxation.

    What will eventually get passed will be something different. But it's anyone's guess what the Senate will come up with.
     
    marty998, 27th Oct, 2018
    #255
    willy1111 likes this.
  16. Banawarra

    Banawarra Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    61
    Location:
    Rural NSW
    A bit off topic but....After reading that article and the first preference votes in Wentworth it really makes me question whether preferential voting is the best system to have?
    I have always been in favour of voluntary voting
     
    Banawarra, 27th Oct, 2018
    #256
  17. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,401
    Location:
    Buderim
    Nodrog, 5th Nov, 2018
    #257
    Ynot, oracle, Parkzilla and 1 other person like this.
  18. Parkzilla

    Parkzilla Well-Known Member

    Joined:
    2nd Nov, 2015
    Posts:
    138
    Location:
    Brisbane
    “Of course, it is somewhat unrealistic to assume that a retiree only has income from Australian shares”

    Why unrealistic? This is exactly what I plan to do.
     
    Parkzilla, 7th Nov, 2018
    #258
    Ynot, thydzik and Terry_w like this.
  19. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,401
    Location:
    Buderim
    Nodrog, 8th Nov, 2018
    #259
    Parkzilla likes this.
  20. balwoges

    balwoges Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,706
    Location:
    Lake Macquarie
    This is exactly how I am surviving ...
     
    balwoges, 10th Nov, 2018
    #260
    Parkzilla likes this.
Page 13 of 27
Thread Status:
Not open for further replies.