franking credits

In the 2019 federal election, Labor’s proposal to abolish cash refunds for excess franking credits went down like a lead balloon. So, will the $3 million cap proposal see Labor revisit history?

The plan to align the tax treatment of off-market share buybacks with that of on-market buybacks puts smaller companies, self-funded retirees and retail investors at a disadvantage, according to portfolio manager Scott Kelly, who worries the proposed changes are “just the beginning”.

Stakeholders have welcomed a recommendation from the Senate Economics Legislative Committee that the government review its controversial plan to limit franking credits stemming from capital raisings and share buybacks.

Australia’s dividend imputation system is designed to stop the double taxation of company profits. While investing in companies that pay fully franked dividends can be tax effective, tax should never be the primary determinant of a decision to buy shares.

The Treasury has released for public consultation draft legislation aimed at closing a tax loophole for off-market share buybacks, prompting renewed fears over the future of franking credits despite assurances that mum-and-dad investors will not be affected.

The nation’s biggest bank announced a $9.6 billion cash profit for FY22, an 11 per cent improvement on FY22. What does that mean for you?

One of the distinguishing features of the Australian equities market is the franking credits regime. A franking credit is generated when Australian-resident companies pay income tax and distribute after-tax profits through dividends. Depending on their tax situation, shareholders might get a reduction in their income taxes or a tax refund, as a result of receiving the franking…

The Australian stock market has long been known as the place to be for income-loving investors. Why? Because company dividend yields in Australia are amazingly high. The dividend yield for 2021 and 2022 is forecast to be 4%-5% plus franking, compared to cash rates and fixed-interest products yielding below 1%. According to Morningstar, S&P/ASX 200…

The exchange traded fund sector moved from strength to strength in 2020, seeing massive flows from retail and professional investors alike. They have also been among some of the best performing investments for the year. Yet with such a great diversity of opportunities available to even the most inexperienced investors, it has never been more…