Tax consideration- AFIC DSSP vs Investment Bonds

Looking at both of these to hold for 20yrs+ and create an income stream whilst not touching the capital.
I like to compare these options and more so look at how the tax works with the DSSP and investment bonds.

From my understanding:
Both Afic dssp and investment bonds-
do not need to declare anything in tax returns
IB- taxed internally at 30%
Dssp- I think still taxed internally at 30%?
Withdrawals-
IB- after 10yrs withdrawals are tax free (I think they must still be taxed at 30% internally?)
Dssp- I can switch off dssp and realise gains for an income stream and take advantage of franking credits.

Disregarding performance and fees, is there a clear winner tax wise?

 

With bonus shares the shareholder is paid in more shares rather than dividends which are reinvested. This is capital with is only taxed on the sale and the 50% CGT discount might be available.

Tax Tip 267: Income tax Issues on Bonus Shares Tax Tip 267: Income tax Issues on Bonus Shares

Tax Tip 275: What is the Acquisition Date of Bonus shares for CGT purposes? Tax Tip 275: What is the Acquisition Date of Bonus shares for CGT purposes?

 

I have looked at both in the past and despite being in the top marginal tax bracket neither appealed, especially the investment bonds.

I forget exactly why but I have a feeling that for the investment bonds it could have been the fact that the management fees and lack of CGT discount didnt really go far enough to beat just paying the tax on earnings, minimal management fees, flexibility, and (possibly) CGT benefits of just holding a low cost ETF.

Similar to the DSSP although that more centered around perceived underperformance of the LIC relative to the index and the trust vs company structure of an index fund, of which I prefer the latter.

Each back of the envelope calculate required a few assumptions, including faith in the CGT discount remaining long term.

In the end, the results were so close I decided to stay away from them, pay the tax man, and enjoy the flexibility of being able to sell for unforeseen reasons without penalty.
I think if the benefits of IB and DSSPs were that great the ATO would be all over it.

I dont work in tax so @Terry_w will be more upto speed