Realigning my share portfolio???

Franking credits are a reflection of the Company Tax rate. It changes. Was 39%, then 36%, then 33% and now, mostly, 30%. For some smaller companies it is now 25% and the aim is to apply that across the board. What are people gonna do? Put out their hands while whinging Where's my 5% gone?

Never seen when dividends or distributions paid, only in a tax return. If a tax refund results and if you have done OK the previous year without it then invest it. In my opinion, you're wetting a wall otherwise.

 

Thanks! I ripped the bandage (partially) and sold half of them today. The others are tiny and tokens from my starting days - one that increased 10 folds but I only have a few shares.

 

I've never understood the fascination with franking credits.

If company A pays out a 100% unfranked dividend of $1 and company B pays out a 100% franked dividend of 70c (with 30c franking credit), to the end user, there is no difference.

The only difference is that under Labor, they wanted to keep taxing company profits at the 47% rate if you were earning over $180k before dividends, whilst also holding onto the 30% if your average tax rate was below 30% (ie pensioners, self funded retirees and lower income people trying to save a future for themselves), instead of refunding the difference.

Could you imagine if Labor (or the Liberals) announced that if your employer withheld too much tax, and if at EOFY you were owed a tax refund, they'd say shucks that's too bad because we don't do tax refunds? That's what they were suggesting here. Silly policy.

 

Maybe read this link and the many links in side it.
https://www.reddit.com/r/fiaustralia/comments/g3zs89/new_to_fire_and_investing_start_here_faq/