Franking credits - gone?

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

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  1. PandS

    PandS Well-Known Member

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    only those on retirement with a refund other than that it crazy to sell as you can still use the 30% franking credit to offset your contribution tax in accumulation account, even then it not a sure thing why act irrationally, still got plenty of time to work through it if labor get elected.

    I did not sell a single shares even labor threaten to slap a cap on MPL fees. I want to see the reality with facts before I change my mind
     
  2. turk

    turk Well-Known Member

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    Yep, also saw it on this site.
     
  3. geoffw

    geoffw Moderator Staff Member

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    I think you would find that there are posts from both sides of the fence in this site. The difference is that, like many people (often, myself included), you find that the people on the other side of the fence are the loud and annoying ones; the posts you agree with are nice and gentle.
     
  4. turk

    turk Well-Known Member

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    I didn't found them annoying and nor neccesarily did I find the posts I agreed with nice and gentle, some were just as loud.

    I have also criticized posters for the tone of the post when I have agreed with their sentiments.
     
  5. geoffw

    geoffw Moderator Staff Member

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    My apologies then.

    I thought you were saying that Skater's description of Labor supporters being a loud and often uninformed lot, with Liberal supporters being quiet and classy, also applied to this site.

    I obviously misinterpreted what you said. My apologies again.
     
  6. Nodrog

    Nodrog Well-Known Member

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    Anthony Albanese says policy reset needed after election, but curbing franking credits still on cards

    Albanese says policy reset needed, but curbing franking credits still on the cards

    And this. Albo’s giving the Libs advice now:
     
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  7. Perthguy

    Perthguy Well-Known Member

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  8. skater

    skater Capitalist -- www.skatepro.com.au

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    Quite possibly! But I do have a large range of people from different interest groups, ranging from self funded retirees, pensioners, business owners, young skaters & their parents and family.
     
  9. geoffw

    geoffw Moderator Staff Member

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    Interesting numbers
    Massive swings against Labor in franking credit seats

    Geoff Wilson, of Wilson Asset Management (well known to some of the share investors here) says that he would not have campaigned against it if it had been grandfathered or limited to $10,000.
     
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  10. Nodrog

    Nodrog Well-Known Member

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    Yes so stupid of Labor. They would have still gotten the bulk of their revenue with a limited cap. That would have ensured only the real target, the wealthy, were hit.

    This from Wilson also:
     
  11. dunno

    dunno Well-Known Member

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    Problem is they wouldn’t have raised much revenue with a cap. The reality was, most of the revenue would have been collected from "many" people receiving relatively small amounts. It was the dishonesty of the policy.

    A cap would have dealt with the equality issue leaving only a small amount of people receiving large refunds effected, but it wouldn’t have raised anywhere near as much revenue to fund their spending promises.

    Franking credit policy was all about raising lots of money in a way they obviously hoped those that would ultimately be affected wouldn’t understand. – Backfire!!

    Those large numbers who stood to lose relatively small but significant to them amounts, were all over their personal situations, knew they weren’t wealthy and knew they weren’t rorting the system with handouts and gifts. They didn’t buy the class warfare sales job.

    When Labor arrogantly wouldn’t listen to their reasonable concerns those large numbers affected, bent the Labor party over the ballot box and gave them a right royal rogering.
     
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  12. Famil Man

    Famil Man Well-Known Member

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    So can the company not decide to completely do away with franking credits and just increase the base share price? Would it not work out the same overall?
     
  13. Simon Hampel

    Simon Hampel Founder Staff Member

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    No, franking credits isn't an amount of money the company has that it can choose to pay out or not - it's just a figure on paper that the ATO gives the shareholders credit for, based on the tax already paid by the company.

    They could choose not to pay a dividend though - and instead reinvest the profits back into the company, which effectively achieves the same outcome: no franking credits claimable by shareholders.

    If a company does pay a dividend, but does not pass through franking credits - then those credits can end up being trapped inside the company and their value lost to shareholders.

    It also depends on where the dividend payment comes from - if it comes from capital rather than profits, then the dividend may be less than fully franked.
     
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  14. Perthguy

    Perthguy Well-Known Member

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    Yeah, but the projected revenue was never going to happen For example sell down some shares and buy an IP and you get your franking credits back. The projected revenue did not account for changes in investor behaviour. It was a swing and a spectacular miss.
     
  15. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Even though Labor received their deserved loss I'm still annoyed by the policy and Albanese is still considering it. Wow.

    A cap sounds reasonable but I'm dubious about arbitrary figures pulled from the nether regions of the incompetent. An analysis should calculate a cutoff where hardworking retirees are not significantly punished. Gramdfathering may also be a fair option.

    I was interested in how many self funded retirees would have flipped to a pension had the policy been legislated.

    It was an us versus them policy in a world that needs collaboration.

    Stupid, stupid Labor.
     
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  16. TSK

    TSK Well-Known Member

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    58B in lost services...*shakes head*
     
  17. dunno

    dunno Well-Known Member

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    58B belonging to those who sacrificed and saved capital for their retirement and will now undoubtedly continue to invest and spend it wisely.

    Versus not transferring that 58B to be spent inefficiently by the government on those who don’t/didn’t make the sacrifices to look after themselves!!!

    You can shake your head – and I’ll do a happy little jig.
     
    Last edited by a moderator: 24th May, 2019
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  18. Simon Hampel

    Simon Hampel Founder Staff Member

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    Election is over and Labor lost, so I'm not sure there's any further value in this thread beyond ideological rabbit holes.

    We can start this discussion again once new policies are announced.
     
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