Podcasts about franking credits

The chances are that your share portfolio is going gangbusters. But a paradox of our bull market on the ASX is that the dividend payouts are sliding: Anyone starting today as a share investor is going to find it much harder to get the sort of dividend income that made our market a standout.What's happening...and what should you do? Don Hamson managing director of the Plato Investment group joins wealth editor James Kirby in this episode. In today's show, we cover: * Fading dividends - Why dividend yields are shrinking?* Forward with franking - dividend imputation is more important than ever* Could A-REITs be the answer ?* The failings of ETFs which Jack Bogle may not have mentioned  See omnystudio.com/listener for privacy information.

We take a look at how much franking credits adds to an investor's returns, and whether the obsession with the tax credits is justified.You can find the full article here.Click the following link for the 5-in-5 With ANZ podcast: https://link.chtbl.com/YEE71vpxInterested in our investing course? Find it here. To submit any questions or feedback, please email mark.lamonica1@morningstar.com or leave us a voicemail to feature on the podcast here.Additional resources from our episodes are available via our website.Audio Producer and mixer: William Ton. Hosted on Acast. See acast.com/privacy for more information.

Dan has a gripe today, Tim is learning, rather reluctantly, about raw dogging and the guys are patiently waiting to hear from Practice Ignition for their invitation to a conference in Nashville.  In the main topic, the guys talk all things Franking Credits. What is a Franking Credit? What can you use them for? Tune in to find out! AMA coming soon. Get your burning questions answered by emailing twodrunkpodcast@gmail.com

In the latest episode of "Money Grows on Trees: The Podcast," host Lloyd Ross dives deep into the intriguing topic of "How To Create Your Own Dividends." Inspired by Warren Buffett's advice and answering a fiery social media debate, Lloyd breaks down the mechanics of dividends, the tax advantages of investing over labor income, and how you can generate your own dividends by selling shares strategically. Whether you're a seasoned investor or just starting out, this episode offers actionable insights that can transform your financial approach and accelerate your path to wealth. Tune in to learn how to leverage your investments for maximum return and minimize your tax burden effectively. Don't miss this essential guide to making your money work harder for you!

Welcome to Episode 194 of The Numbers Game. This episode is all about making sure you're paying the least amount of tax legally possible, specifically through the use of bucket companies. We take you through strategies and examples for using bucket companies to reduce tax liabilities, protect assets, and grow family wealth!On this episode, we discuss:What is a Bucket Company?The Tax Benefits of Bucket CompaniesReal-Life Examples and Tax PlanningAdvanced Bucket Company StrategiesCan You Trade Out of a Bucket Company?Check out the free resources from Inovayt here.Send us an email: hello@thenumbersgamepodcast.com.auThe Numbers Game is brought to you by Future Advisory & Inovayt.Hosts:Nick ReillyJason RobinsonMartin VidakovicThis podcast is produced by VIDPOD.

Welcome back to another episode of the 360 Money Matters Podcast!  In this episode, we discussed how to legally minimize your taxes. We mentioned the complexity of Australia's tax code and how you can utilise this to help bring down the amount of tax that you are paying. We'll discuss things like; additional super contributions, negative gearing, franking credits and many more things that you can do to bring down the overall tax that you pay.  Learn valuable strategies and insights that can help you keep more of your hard-earned money while staying within the bounds of the law. Don't let complex tax codes overwhelm you; instead, empower yourself with knowledge. Tune in now and take the first step towards optimizing your financial future! - This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis &  Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706   Episode Highlights Minimizing tax legally Tax benefits of contributing to superannuation How Franking Credits can offset taxes on investment income Importance of positioning assets for Franking Credits to invest tax-effectively Negative gearing and its potential tax benefits Tax-free exemption associated with owner-occupied properties The importance of selecting the right asset ownership structure The need for coordination among professionals involved in tax planning Investment bonds as a tax-effective strategy   Connect with Billy and Andrew! 360 Financial Strategists    Check out our latest episode here:  Apple Podcast Spotify Google Podcast  

When it comes to investing, there are no stupid questions. If you have a query about shares or ETFs, there are likely a crowd of people who want to know the same thing.To address these FAQs, Natasha Etschmann (Tash Invests) and Ana Kresina (Head of Product & Community at Pearler) are hosting an investing Q&A. In this episode, they cover everything from “How often should I invest?” to “How many ETFs is enough?”. Come with an open mind, and you'll leave with a head full of answers!@tashinvests@anakresina@getrichslowclub@pearlerhqGet Rich Slow ClubPearlerYouTubeDisclaimerAny advice is general and does not consider your financial situation needs, or objectives, so consider whether it's appropriate for you. You should also consider seeking professional advice before making any financial decision. Natasha Etschmann is an Authorised Representative 1299881 of Guideway Financial Services Pty Ltd AFSL 420367. Read the FSG available from https://tashinvests.com/linksPearler is an Authorised Representative 1281540 of Sanlam Private Wealth Pty Ltd AFSL 337927. Read the FSG available from https://pearler.com/financial-services-guideIf you are considering any of the products we spoke about during the show, be sure to read the Product Disclosure Statement & Target Market Determination available from the product issuer's website before deciding.

Today we're cracking open the podcast question box to riff on some of the questions you've asked us recently. In this episode, Kate, Owen and financial adviser Drew Meredith cover a whole heap of different topics in a relaxed style, including:

This fortnight, Steve and Luke cover: The Markets. Fortnightly Wins. Franking Credits, what are they, and how do they work? Retirement mistakes we often see. Enjoy the latest episode. Don't forget and give us a review if you liked the episode.

Welcome back to another episode of the 360 Money Matters Podcast!   In this episode, we will discuss franking credits - how it works, the tax benefits, as well as its advantages for creating passive income. We highlight the tools used to optimize and maximize opportunities, including the concessional environment and preservation rules. We discuss how passive income associated with a particular stock versus passive income associated with property has different advantages and disadvantages. We also talk about the role of a good management team in deciding what to do with the profits generated from your investments. Most importantly, it is important to have flexibility in your investment strategy to anticipate future needs. – This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis &  Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706   Episode Highlights Passive income from property and shares, including capital growth and dividends About dividends and its relation to Franking credits Franking credits - what they are, how they work, and their tax benefits Diversification of investment markets About assets Passive income associated with a particular stock versus passive income associated with property Flexibility in your investment strategy   Connect with Billy and Andrew! 360 Financial Strategists  Check out our latest episode here:  Apple Podcast Spotify Google Podcast  

Fund manager Geoff Wilson has made of Wilson Asset Management says that changes to the franking system by the Federal Labor government will significantly impact companies. The franking credit system was introduced by then-treasurer Paul Keating in 1985 to stop the double taxation of dividends. Franking credits, or imputation credits, are tax credits paid alongside company dividends for imputed tax already paid by an Australian company.  See omnystudio.com/listener for privacy information.

Geoff Wilson is the Chairman, Chief Investment Officer and founder of Wilson Asset Management (WAM), a company that manages 8 Listed Investment Companies (LICs) and manages around $5 billion in shareholder capital on behalf of over 130,000 investors. Geoff Wilson recently sat down with Owen Rask on The Australian Investors Podcast to talk about his life, LICs and the debate on frankingcredits. Watch the video version on the Rask Australia YouTube page. Take Owen's brand new Value Investor Program, which gives you all the tools and knowledge you need to invest successfully in companies, including valuation spreadsheets, investing checklists and ASX company case studies. Alternatively, why not take Owen's FREE investor bootcamp: bit.ly/rask-analyst Join The Intelligent Investor & save This podcast is brought to you by The Intelligent Investor, Australia's premier investment research membership service. Use the code "RASK", to get $100 off your annual membership or get a free 15-day trial (no credit card details required):

This week, Mena and I discuss how franking credits (aka imputation credits) work and how integral they are when it comes to tax planning including: ·      Their aim is to avoids double taxation. ·      Provides you with a tax offset so it's important to keep track of your Company's franking account.·      Sometimes paying tax sooner, so you can pay a franked dividend can reduce your overall tax. ·      Distribution/dividend strategy - streaming franking credits to beneficiaries or shareholders with low taxable income and to receive a tax refund. If this episode resonated with you, I'd love to hear your thoughts! Sharing your feedback on your favourite podcast platform helps me expand my reach and connect with more incredible listeners like you. Thank you deeply for being a part of this journey! To subscribe to our weekly email: https://www.prosolution.com.au/stay-connected/ SPECIAL OFFER: Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog here: https://prosolution.com.au/books. Work with Stuart & Mena's team: At ProSolution Private Clients we encourage clients to adopt a holistic and evidence-based approach when making financial decisions. To accomplish this, our multidisciplinary team of experts collaborate extensively on behalf of our clients, ensuring thorough exploration of all potential opportunities. This collaborative method enhances the value we deliver to our clients. Visit: https://prosolution.com.au. Follow us on socials: Stuart: Twitter/X: https://twitter.com/StuartWemyss and LinkedIn: https://www.linkedin.com/in/stuartwemyss/ Mena: LinkedIn: ...

In this episode, we discuss franking credits, their purpose, and how they benefit you.   [Disclaimer]

Geoff Wilson, who is founder, chairman and chief investment officer at Wilson Asset Management, told Tom Elliott he was concerned by the wording of the legislation.See omnystudio.com/listener for privacy information.

News Corp say they believe in climate change now. Don't take their word for it. We also discuss whether buying billboards is effective climate activism.     News Corp are climate activists? News Corp are running a two-week campaign called “Mission Zero”. Joe Hildebrand is fronting the campaign. Their tabloids ran with “Green and Gold” on their front pages. McLean's deep dive into News Corp's ongoing climate denial and pushing of gas. The News Corp writeup of solar panels is just as bad. A part of the their other “Green” coverage, News Corp ran a hit piece on renewables, an exclusive with Gina Rinehart, and a puff piece on Twiggy Forrest. Andrew Bolt is big mad (or plays the heel at least). Ketan Joshi on the whole News Corp package. Labor can't deny Shadow Minister for Climate Change and Energy Chris Bowen gave a wild speech to launch the Climate of the Nation Report. Victoria Labor is also shit, voting down a Green party bill to prevent drilling for gas near the Twelve Apostles. School struck for climate Carn the kids! The School Strike for Climate's demands. JokeKeeper ha ha A Rational Fear podcast. The Jokekeeper fundraiser. Running billboards in Times Square. A Rational Fear had Joe Hildebrand on to continue whitewashing News Corp. McLean's analysis of the episode. Shoutouts Shoutout to the AFL Players for Climate Action!

Murray Jones from 4CA speaks with Leader of the Opposition Anthony Albanese about the latest Newpoll result and the future of franking credits

Murray Jones from 4CA chats with Member for Sydney Tanya Plibersek about the campaign against the Covid-19 outbreak in NSW and franking credits

Charlie Viola is a Partner at Pitcher Partners, providing financial advisory and wealth services to high net worth and ultra-high net worth individuals. Specialising in ongoing investment management and administrative services, Charlie's personally responsible for over $1.5 billion of funds under management. Charlie has been recognised by Barrons as the #1 adviser in Australia in their 2018 Adviser Rankings, #4 in 2019.For this episode we reached out to the Equity Mates community in our Facebook discussion group and asked for your questions when it comes to tax time, and Charlie has kindly agreed to come and help us out. Our working title for the episode was 'Make Bryce excited about tax!', did we succeed? If you want to let Alec or Bryce know what you think of an episode, contact them here. Some of our favourite resources and offers to help you during your journey:$50-$200 OFF some amazing investing courses by our friend-of-the-show, OwenTrack your investment portfolio with Sharesight.Get a free stock when you sign-up to Stake, using the code EQUITYMATESGet exclusive access to our favourite data and insights platform, TIKRTake the emotion out of investing in Bitcoin, Ethereum, Gold and Silver with micro-investing app, Bamboo. Use EQUITY MATES for $10 when you sign-upGet $15 of Bitcoin, using one of our favourite crypto-currency exchanges, SwyftxGet free trades if you plan to use the broker SelfWealth Make sure you don't miss anything Equity Mates related by signing up to our email list. And visit this page if you love everything Equity Mates and want to support our work.*****Any views expressed by the podcast host or any guest are their own and do not represent the views of Equity Mates Media or any other employer or associated organisation.Always remember, all information contained in this podcast is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. The hosts of Equity Mates are not financial professionals and are not aware of your personal financial circumstances. Before making any financial decisions you should read the Produce Disclosure Statement (PDS) and, if necessary, consult a licensed financial professional.For more information head to our Disclaimer Page, where you can find resources to search for a... See acast.com/privacy for privacy and opt-out information.

Howard Coleman from TeamInvest and Gary Glover from Novus Capital go in-depth and stock-specific. Stocks: COH, MVP, CLH, CMW, BIN, PNI, APE, ISD, PPS, FLC. The stock of the day is not a stock but a hot topic for some investors: Bitcoin (BTC). See acast.com/privacy for privacy and opt-out information.

Welcome to Finance and Fury, the Saw What Wednesday edition, where every week we answer questions from each of you. This week’s question is from Adam  “Hi Louis - Really enjoy your podcasts.  Not sure if this is too outside of your comfort zone but I would be really interested in hearing a podcast on whether it is still viable to set up an off shore investment company.  as we move into a period where the government is taking on more and more debt I've started looking into offshore options on the internet. I know the Turnball's etc have offshore companies to manage investments, but has most of the advantages largely disappeared through inter-government transparency?” Investing Offshore – look at how it is done, if it still can be with increased transparency – and the pros and cons Why would you want to invest overseas – create an offshore investment? Reduce tax and reduce transparency – but these things aren’t so easy as they were 20 or 30 years ago In Australia – and most western countries – we have high levels of tax – especially the more you earn – consumption, state taxes – taxes on investments – Investment Income taxes or CGT – have the 50% discount – on CGT which some other nations don’t have – But Also have Franking Credits to help offset dividend income Even Super as a tax structure is an effective tool to reduce tax payable – but does have legislation risks -but TBH – so does every investment vehicle that we have – even investing overseas can be at the whim of a DTA – laws change The OECD though have a massive reach when it comes to monitoring offshore tax havens - they now control the tax systems of most countries in the world through policy directives - investing offshore less attractive due to OECD – “aligns the information exchange provisions to the current OECD standard by replacing Article 19 of the existing Agreement. The new Article 19 continues to provide for the exchange of tax information by the tax administrations of the two countries” OECD say their purpose is to “eliminate unfair tax competition” – to make countries have the same sort of tax rates – reducing the incentive of investing off shore – but also increase information sharing to avoid people hiding taxable incomes At the corporate level – companies like Google, EBay, Starbucks and Facebook have shown they can do tax minimisation very effectively – tax conduit and tax sink country strategies - structures involving Ireland (only 12% corporate tax rate), and Netherlands (tax-free for holding intellectual property) – covered this a while back in the series in the EU including the City of London corporation – so the big companies have worked out the game – but at the individual level – can we do this? This is the difference between tax minimisation – and tax avoidance – What you do have to be within the law – which is very hard to achieve with the increased regulations – not only in Australia with the AML/CTF rules – Austrac – ATO – along with OECD intergovernmental cooperation – Many of the ultra wealthy and massive companies do this – how they remain competitive – if you have to pay 30% tax versus 1% tax like in Apples case – you can easily out compete – but they did get caught and had to pay some tax back But as Kerry Packer once said when questioned about his tax strategies - “I am not evading tax in any way, shape or form. Now of course I am minimizing my tax and if anybody in this country doesn't minimize their tax they want their heads read, because as a government I can tell you you're not spending it that well that we should be donating extra.” But we are not companies – Companies have protection – and now if directors of a company do something illegal they are liable – unlike a multi-billion dollar company – we don’t have the budgets to pay for lawyers for millions of dollars a year to 1) work out a tax strategy for us or 2) defend us against the state if we get taken to court – which has an unlimited budget due to tax funds – Example of this in action is Project Wickenby – The Project Wickenby was cross-agency taskforce – spearheaded the Australian Government's fight against offshore tax evasion - taskforce was established in 2006 to expand upon Australia's financial and regulatory systems through preventing people from participating in using jurisdictions that weren’t forthcoming on information about individuals investments or tax payments – stereotype on Switzerland task force led to over $2.2 billion in tax liabilities being raised. It also increased tax collections from improved compliance behaviour following high profile investigations, prosecutions and sentencings – essentially scared people into ceasing investing overseas or not declaring all of the income - celebrities like Paul Hogan were caught in this Project Wickenby finished on 30 June 2015 when the Serious Financial Crime Taskforce was established. One scheme that got shut down was being used by HWI – with a tax planning scheme of using companies in Vanuatu to shift money through – How did this work? A Vanuatu “management” company was set up and agreements were made between this company and an Australian company whereby management, royalty or IP fees were charged – then tax deductions were being claimed to offset income in Australia – again what Apple and many other companies do – but if no management or IP is being provided – and fees being charged are high – it is illegal – especially as the money that should have been paid was being treated as a loan The days of using dodgy tax planning schemes to avoid paying tax are well and truly over The question is – what is the point of doing it at the individual level? – but also how do you do it and how much will it cost to achieve Not a legal expert in this subject – but experts who deal in these matters aren’t cheap – might cost you $20-30k in legal fees each year to maintain – so the tax savings better be worth it The fact is – we are limited as an Australian investor from using tax minimisation strategies (legally) through overseas structures – you can still do it though in some manners – not advice – speak to a tax lawyer There are still many ways you can sometimes minimise your tax by investing offshore – Method – In order to invest in an offshore jurisdiction - you need to open an offshore investment account This account would be a form of brokerage/trading account – but you would need to also opened an offshore bank account – all the normal documentation is required to ID you or a company that was opening it – again your information can be shared back to Aus with the ATO There is special emphasis on the offshore location because that is the major reason for opening an offshore investment account The location is a tax haven where capital gains earned on any investments made are tax-free - If you trade the markets and are still an Australian resident, you can set up a company in Switzerland, Singapore, Hong Kong, or Malta, and although you still have to pay tax in Australia, you don’t have to pay tax until you bring the money back into Australia Some of these countries require you to buy a property there as well – and some accounts have a minimum of $100k to into the millions you need to bring into the country to qualify – again – these strategies are mostly beneficial to the ultra-wealthy Other benefits come in the form of reducing investment income payable – from DTAs Using offshore companies in a range of jurisdictions with tax treaties with Australia, eg. Malta, USA, New Zealand, Ireland Take Malta as an example – have a DTA with them since 1984 – Dividend income is taxed at 15% - as a withholding tax – But – is this better than tax on dividends here? Depends on your MTR but also franking credits MTR Net Income Net Tax 0.0% 1.428571 42.9% 21.0% 1.128571 12.9% 34.5% 0.935714 -6.4% 39.0% 0.871429 -12.9% 47.0% 0.757143 -24.3% Examples – per $1 of dividend on a FF share – Not until you get above $180k in income do you start paying more in Aus off a FF share Also – Super – I know you cant access it until you are 60 – but after this time there is 0% of tax – in the interim – income tax is 15% - but if you get a FF dividend in a WRAP account – get $1.214 for every $1 with FC Being a non-resident of Australia – which is the opposite works as well - If you choose to become a perpetual traveller and establish a residency outside of your home country - becoming a non-resident – you can pay 0% tax here in FF dividends, but don’t get FCs, pay 10% in tax on interest income as well Need to meet one of the non-residence tests – generally out of the country for 6 months of the year and prove that you don’t intend to live here permanently again (domicile test) In summary – Strategies to reduce tax by investing overseas are going – and the costs and complexity to maintain a structure may be more than any tax savings – also – don’t want to do anything illegal – important to ask a professional in tax law about this to avoid any massive fines or jail time But remember there are strategies that work well in Aus to help reduce tax payable on investment income Family trusts if you have beneficiaries – using super – personally having franking credits on dividends – these can yield lower taxable income results compared to if you do so in a country overseas after costs associated with this Thanks for the question Adam   Thank you for listening to today's episode. If you want to get in contact you can do so here: http://financeandfury.com.au/contact/

Show NotesDownload the PDF to follow the episode examples here:www.medicalmoney.com/episode17Topics CoveredDividendsFranking CreditsForeign DividendsDRPs, Bonus Share Plans and DSSPsListener QuestionsUseful LinksFranking Credit 45 day holding rulehttps://www.ato.gov.au/Forms/You-and-your-shares-2019/?page=10Foreign Investment Offset Limit https://www.ato.gov.au/Individuals/Tax-return/2018/In-detail/Publications/Guide-to-foreign-income-tax-offset-rules-2018/?page=3#Calculating_your_offset_limithttps://www.ato.gov.au/uploadedFiles/Content/IND/Downloads/Foreign-Income.pdfATO LICs Bonus Share Planshttps://assets.afi.com.au/documents/132138DSSP_Tax_Ruling-4.pdfAFIC DSSP https://www.afi.com.au/shareholdersWhitefield bonus share plan https://www.whitefield.com.au/shareholder-info/bonus-share-planToday’s GuestConaill Keniry ContactWhat If Advicewww.whatifadvice.com.auEmail:ckeniry@whatifadvice.com.au YouTubehttps://www.youtube.com/whatifadviceLinkedInhttps://www.linkedin.com/in/conaill-keniry-b8022a14/

Investing in shares can produce tax benefits. But it can also result in tax liabilities too. Terms such as “franking credits” and “imputation credits” (same thing) were frequently used during last year’s federal election (the Labor Party proposed to ban franking credit refunds). However, many people do not understand these concepts. So, this blog seeks to provide a simple overview of the possible taxation consequences resulting from investing in shares.There are two types of taxes that could result from making an investment (including share market investments) being income tax and Capital Gains Tax (CGT).Income tax and franking creditsSome shares pay investors an income which is called a dividend. This is typically paid twice per year (interim plus final dividend). The amount of the dividend can vary significantly (this is called the dividend yield – refer to this blog for a basic overview of investing in shares).A company can declare and pay a dividend from profit after it has paid tax. The dividend imputation system was introduced in Australia in 1987 by the Hawke-Keating Labor Government. Essentially, it sought to avoid the double taxing of corporate profits. This is best explained as an example.Assume listed company XYZ Ltd recorded a profit of $100. It would pay $30 in tax because the corporate tax rate is 30% for companies with turnover of greater than $50 million. So, its after tax profit is $70. If it paid the dividend to shareholders who are individuals on the highest margin income tax rate of 47%, they would pay $32.90 of tax (being 47% of $70). The amount of the dividend left after paying all taxes is only $37.10 meaning the effective tax rate is 62.9%! In this instance, company profits have been taxed twice – once in the hands of the company and then again in the hand of the shareholder. Hawke-Keating believed this double taxation was unfair. So, how does dividend imputation work?To avoid the double-taxing of dividends, shareholders obtain a credit for the amount of tax the company has previously paid. Using the example above, the company has already paid $30 in tax so the shareholders will obtain a credit for this amount.The formula is: cash amount of dividend plus franking credit multiplied by the marginal tax rate minus the franking credits.Therefore, using the example above, the cash dividend is $70 + $30 of franking credits X 47% - $30 franking credit = $17. So, the shareholder will pay an additional amount of tax of $17 when they lodge their tax return. This means the net dividend retained after all taxes is $53 ($100 - $30 - $17).Imputation credit refundsIf the shareholder has an effective tax rate lower than the corporate tax rate, then they will receive a tax refund. A good example of this is superannuation funds. A super fund’s tax rate is 15%.Therefore, a super fund will receive the dividend of $70 plus a refund of $15 (i.e. using the formula above; $70 + $30 X 15% - $30 = refund of $15). If the super fund is in pension phase, its tax rate is zero so it will receive a full refund of all imputation credits i.e. $70 + $30. This is what the Labor Party was arguing against last year i.e. that self-managed super funds shouldn’t be entitled to a refund.International shares offer limited tax creditsMost foreign countries do not have an imputation system except for New Zealand. That said, you may be entitled to foreign tax credits resulting from receiving dividends. However, any credits will typically be relatively immaterial, and certainly not as generous as the Australian system.How does capital gains tax work?If you sell shares and for a profit, you may have to pay capital gains tax. If you have owned the shares for more than 12 months, you are entitled to discount your capital gain by 50%. The net capital gain is then taxed at your marginal tax rate.Example: Karen purchased Afterpay Ltd shares in January 2018 for $6.50 per share. She sold these shares in January 2020 for $34 making a very healthy profit of $27.50 per share. Because she owned them for more than 12 months, she can discount the gain by 50% to $13.75. This gain is taxed at her marginal rate of 47%. So, she will pay approximately $6.46 per share in tax.Different owners will produce different tax outcomesThe dividend imputation system means that the amount of tax you pay will be dictated by the shareholder’s tax rate:§ Superannuation fund (either in a SMSF or wrap product) – this is the most tax effective environment because it has a flat tax rate of 15% in accumulation phase (i.e. while you are still working) and zero in retirement (pension phase). This means that the amount of dividend will consist of a cash amount plus a tax refund. For example, over the past 12 months, Westpac paid a cash dividend of $1.74 per share and this was fully franked. This means there were $0.75 of franking credits attached to these dividends. Therefore, if a super fund that is in pension phase owned these shares, the total income that would receive is $2.49 per share ($1.74 + $0.75) or 9.9% p.a. If a super fund was still in accumulation phase, the after-tax dividend would be $2.11 or 8.4% p.a.§ Family Trust – if a family trusts owns shares it can distribute dividends and capital gains to the beneficiaries that would enjoy the best tax outcomes. For example, dividends can be distributed to persons on low incomes to receive full benefit of the imputation credits. Capital gains can be distributed to beneficiaries that have carried forward capital losses.§ Personal name – if you own shares in your personal name then obviously dividends will be taxed at your marginal rate.A plan will find the most optimal structureThis demonstrates that depending on how you own shares, dividend imputation credits can significantly increase your after-tax income returns. When I develop a financial strategy for my clients, I take this into account.For example, if a client has share investments in super and a family trust, then I might recommend that we invest in Australian shares in the super fund and international shares in the trust, to achieve the best tax outcomes. Of course, I’m not going to develop an asset allocation solely to maximise tax benefits. The asset allocation is developed without considering taxation. However, how that pre-determined asset allocation is implemented is often heavily influenced by taxation considerations.Don’t rush out and buy sharesI don’t believe in investing in direct shares because there is overwhelming evidence that very few people or businesses (less than 1%) can pick which shares to buy and when to sell them consistently well to generate materially higher returns than the market.Instead, I believe that investors are better off using a diversified portfolio of low-cost, rules-based, index funds that utilise various methodologies. Here are two blogs that explain this in more detail (here and here). Investors will still enjoy the tax benefits explained above if they adopt this approach.

Did you know, if you pay 25% tax you're effectively working 3 months (25%) of your year just to pay the Tax Man?Ugh...In this episode of The Australian Finance Podcast, Kate & Owen talk taxes, why we pay them, how we pay them and when we pay them. Topics covered include:Income taxCapital gains taxCompany taxFranking creditsTax deductionsHow to find an accountantPrivate health insurance The Medicare LevyTake Owen’s finance courses: https://www.rask.com.au/sign-up-financeSHOW NOTES: https://www.rask.com.au/podcasts/australian-finance-podcast/How To Money: https://howtomoney.onlineThis podcast contains factual/general information only. It is NOT financial advice of any kind. That means the information does not take into account your objectives, financial situation or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner.Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser or financial adviser.

More Australian cities are declaring a 'climate emergency' and now we know what it means - women aren't welcome after dark. Why the assault on Leigh Sales needs to be punished, and does Media Watch watch the ABC?

Christopher Pyne is in clear breach of the Ministerial Code of Conduct. The head of Prime Minister and Cabinet, Martin Parkinson, knows this, but he decided to pander to his political masters rather than serve us. So much for a frank and fearless public service.

Last episode of the month, means we're once again answering your questions. In this episode we're answering questions on: • Franking credits • Bonds and fixed income products • Mergers and acquisitions • International diversification and exchange rates • Facebook's new cryptocurrency Libra • Intrinsic value • Knowing when to sell If you want to ask questions for our next Ask Us Anything episode, reach out to us via email, social media or the Ask Us Anything section of our website. How to Get Involved in Equity Mates: • Equity Mates Website • Ask Us Anything Page • Thought Starters • Equity Mates Facebook Page • Facebook Discussion Group • Instagram • Equity Mates Twitter • Email (contact@equitymates.com)

Welcome to FF – SWW- answer questions from each of you – this week from Sebastian   Hey Louis. I've been thinking about the pro's and con's of Managed Funds vs LICs/LITs. It occurs to me that one of the main disadvantages of managed funds is their open-ended nature.   In a crash, A manager of a fund is disadvantaged in this situation because they are having to redeem fund units as panicked investors sell out at a time they should be deploying cash into the market. Closed-ended LICs and LITs don't have this problem.   What do you think about this - and should it impact our choice of investment vehicles? Thanks, loving the podcast as always!   Great question! WARNING: No advice, just providing general examples of when things work, when they don’t – on with it   Few things to clear up – have to run through open/close ended funds, what are MFs/LICs/LITs, the risks/benefits of each and which one experiences the worst outcome in a ‘bank run’ on an investment – people wanting their money back all at once   First – Quickly run through Managed Funds, LICs, LITs These are the structures that hold the underlying assets Managed Funds – Trust structure – therefore, open ended structure Buy – Buy units with the manager – they then create these, pool your money in line with other investors money – Sell – tell manager, they sell your allocation to shares, you get the cash, units are no more This is called open ended – as many units that are needed are created, or sold Income – Distributions – Trust structure, so they pay no tax and pass on all income, or gains to you =Dividends, Franking Credits, Realised capital gains (that isn’t reinvested) Listed investment companies - LICs are incorporated as companies - closed-ended funds Like any share – you need to cap supply - issue a fixed number of shares on initial public offering (IPO) Buy – Have to buy off someone who holds shares and wants to sell – This means they do not regularly issue new shares or cancel shares as investors join and leave the fund. Instead, they , and investors must buy and sell those shares on ASX. This closed-ended structure allows the fund manager to concentrate on selecting investments without having to factor in money coming into or leaving the fund. This stability can be of assistance to managers who take a long-term approach to investing. As companies, LICs have the ability to pay franked dividends. Listed investment trusts - LITs are incorporated as trusts, rather than as companies - also closed-ended vehicles investors buy and sell existing units on ASX – hybrid between the two – buying managed funds from someone else – not manager Listed investment companies (LICs) and listed investment trusts (LITs) make up the majority of the listed managed funds on ASX Focus on Managed Funds and LICs/LITs – open versus closed   Pricing of each investment option – Unit price versus share price – differs in how they are priced and what is the value Managed funds and ETFs are priced at (or near for ETFs) the net asset value (NAV)  NAV - total market value of the fund's investments, cash and cash equivalents, receivables and accrued income. The market value of the fund is computed once per day based on the closing prices of the securities held in the fund's portfolio Unit Value = net value/number of units in fund Example – MFA currently holds 10 shares (nothing else – just one company) – each share = $10 = $100, then If there are 10 units – Unit price would be $10 Someone buys 10 more units – does the price go up? No – Use your money to buy 10 more shares – Now the NAV is $200, but unit price is still $10 If the shares MFA holds go up in value – to say $20 – NAV = $400, Price = $20 Close ended funds – trade at a discount or premium to their NAVs based on the demand from investors premiums - result of a greater number of buyers than sellers in the market discount - results from more sellers than buyers – supply and demand for the share What we get here is where like any share – people will pay more for it if they think it will go up Some of the best LIC managers have traded at 20% above NAV – due to good past performance But then long term investors take their profits and the price drops – not the NAV LICs and LITs are closed-ended funds that normally trade at a discount or premium to their net tangible asset (NTA) backing market determines the price around the supply and demand of the share itself – Open ended prices are set by the value of the underlying assets – which is a much broader supply and demand – between all of the assets they hold, rather than the demand for their units A lot of this comes from Fund Transparency Difference and supply/demand of investments The greatest difference between ETFs and CEFs is how transparent each fund is to the investor. ETFs are highly transparent because ETF fund managerssimply purchase securities that are listed on a specific index. Stocks, bonds and commodities held in an ETF can be quickly and easily identified by reviewing the index to which the fund is linked. However, the underlying securities held within a CEF are not as easy to find because they are actively managed and more frequently traded. Supply V Demand – if you are focused on the price of the asset more than what is underlying it, get mismatch in prices These are all structures – You can get a Managed Fund that loses all of its value while an LIC does well - What matters more are the Investments, and their styles - broad categories: Investments Australian shares funds invest principally in ASX-listed shares. International shares funds invest principally in shares listed on international stock exchanges. Australian or International Bonds, or other debt instruments Alternatives – Commodities, Private equity funds invest in Australian or international unlisted companies. Specialist funds invest in special assets or investment sectors such as wineries, technology companies, resources businesses or telecommunications providers. Investment approaches in some specialist, private equity, or unlisted funds are the cause for redemption concerns If new units are created and the investments are easily purchasable and liquid – low risk If new units are created but the investment is in an illiquid asset – wait times for cash out REIT – Can be open or closed-ended – something to watch out for Example – property crash occurs – Open ended – People want cash back from manager – managers have to sell property to keep up with redemption demands – so they freeze fund – do a firesale and give the unit holders whatever is left – Seen mortgage funds with 2 cents back from $1, and property trusts with 20 cents back per $1. Closed ended – people want cash back, people sell to those willing to buy – prices drop Listed REITS – people sold back in 2008-2010 – prices of assets dropped 85% Direct shares – Stockland - $8.50 to $2.20 from end of 07 to start of 09 Performance in a downwards market – share funds can retain cash and invest it for you, other funds, cant, so cant capitalise and survive and correction – make sure whatever you are buying in these structures doesn’t have a large allocation to illiquid investments – or ones that can go down massively in prices   What is the risk Are managed funds (open ended) as a greater redemption risk compared to closed ended Depends on the circumstances and types of investments held Always check the mandates/PDS – how long does it take to get your cash out? Where the redemption risks are depends on the type of investment that is held in the Managed Fund structure the underlying asset are in direct property or mortgages, then the funds sometimes need to freeze redemptions and do a fire sale of the underlying assets to meet the investments withdrawal requirements. Unfortunately though, this is often at a fraction of the original unit price. It is slightly different for listed investments that are easily redeemable, such as shares. The redemption process of managed funds for shares simply requires the manager to sell your parcel of shares per unit and then the funds are withdrawn to you in a 3-5 business day timeframe (for Australian shares). As they are open ended funds, new units are created when someone invests money and more of their underlying holdings are purchased. The real risk is that the price of the units is only updated at the end of the day at which point they can be sold or purchased. So the risk isn’t so much from redemptions reducing the value, but from not being able to sell at any other price than that of the market close prices. For Closed ended funds, these can often be very volatile because their value can greatly fluctuate based around market demand (unlike the Net tangible asset price for open ended funds). Shares can trade at a deep discount, and it can often be difficult to realize the true value of the LIC structures are they don’t have the same pricing mechanics. I.e. for LICs, as their prices are determined by the demand for the share, they can move much more in price regardless of their underlying asset values. Thanks again for the great question and speak to you soon.  If you want to get in contact you can do so here.

1. People are likely to feel more confident (no changes to Negative Gearing, Capital Gains Tax, Franking Credits, inheritance taxing). Consumer sentiment likely to improve 2. We still have an issue with Lending - the ability to service a loan - with the tough requirements. 3. Likely to see more listings hitting the market… more supply with limited demand will see prices stagnant or dip.

Is now a good time to invest? Can interest rates decline when they are already so low? Elizabeth will examine US and Australian interest rate forecasts, then have a look at historic and current returns from various asset classes. She will discuss Labor’s proposed changes to franking credits and its effect on the investment landscape. To watch the video with the slides: https://www.australianshareholders.com.au/webinar-recordings (member paywall) Recorded 9 May 2019

Labor's arguments for franking credits are remarkably similar to the arguments for death taxes - and they're an easy way to get us more used to the idea that the tax man comes when you go.

In March 2018, the Australian Labor Party proposed a change to the tax system that would make excess imputation credits non-refundable, should they win the Federal election in 2019. In this episode of Talking Law Joanna talks to one of Australia's foremost authorities on Tax and Property, Edward Chan about how these potential changes might impact businesses in Australia, and their owners.

In March 2018, the Australian Labor Party proposed a change to the tax system that would make excess imputation credits non-refundable, should they win the Federal election in 2019. In this episode of Talking Law Joanna talks to one of Australia's foremost authorities on Tax and Property, Edward Chan about how these potential changes might impact businesses in Australia, and their owners. [EP 084] How might possible changes to franking credits, negative gearing and taxing of trusts impact businesses in Australia, and their owners? | Aspect Legal

Hear from a pioneer of the Australian LIC industry as Geoff Wilson, Chairman & CIO of Wilson Asset Management, joins Matt to share his story of how he helped popularise this investment vehicle and built a successful funds management company. Geoff also shares why he is opposed to Labor's proposed franking credit changes and his philanthropic initiatives that have seen over $10 million raised for charity.

This episode Alex and Chris discuss Labors Election tax policies. Franking Credits, Abolition of Negative Gearing, Tax on trust distributions and superannuation. What does it mean for you, and what does it mean for the economy. Have a listen.  To check out the youtube video of this podcast head over to https://youtu.be/GNIJZ-sgIbw  

The Standing Committee on Economics have recently advised the Australian Labor Party (ALP) to remove refundable franking credits. Wealth Within Chief Analyst Dale Gillham discusses his views on the issue.

The Standing Committee on Economics have recently advised the Australian Labor Party (ALP) to remove refundable franking credits. Wealth Within Chief Analyst Dale Gillham discusses his views on the issue.

In this episode Zac and Pete discuss the proposed changes to franking credits should Labor get in at the next federal election which is looking more and more likely. This is a policy that will potentially affect a lot of self funded retirees so we look at the possible ramifications and what portfolio changes, if any, you should look to implement. --- Send in a voice message: https://anchor.fm/thewealthcollective/message

Is this weeks special episode we talk to Stephen Koukoulas who explains exactly what franking credits are.

Richter's comments about Pell's abuse being "plain vanilla" will haunt Pell and Pell's supporters, Alex Turnbull attacks the Libs and an Aussie legend pays the price for ingenuity

This week’s Nucleus Instant Insights, we look at the proposed changes to refundable imputation credits.Join Nucleus Wealth’s Head of Investments Damien Klassen, and Tim Fuller as we bring you up to speed some of the impacts these changes will bring:– Who the changes will affect most– How these changes could affect traditional high dividend stocks– Structuring for the changes– Things to think about if you are going to be affectedDownload Slides HereThe information on this podcast contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Damien Klassen and Tim Fuller are an authorised representative of Nucleus Wealth Management, a Corporate Authorised Representative of Integrity Private Wealth Pty Ltd, AFSL 436298.

This week’s LIVE webinar (12:30pm AEST, Thursday 28 Feb) – we look at the proposed changes to refundable imputation credits.Join Nucleus Wealth’s Head of Investments Damien Klassen, and Tim Fuller as we bring you up to speed some of the impacts these changes will bring:– Who the changes will affect most– How these changes could affect traditional high dividend stocks– Structuring for the changes– Things to think about if you are going to be affectedDownload Slides HereThe information on this podcast contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Damien Klassen and Tim Fuller are an authorised representative of Nucleus Wealth Management, a Corporate Authorised Representative of Integrity Private Wealth Pty Ltd, AFSL 436298.

Tax Wrap calls Canberra, and gets Ken Mansell's informed insights into the ALP's policies regarding imputation credits, negative gearing (and reducing the CGT discount) and a 30% tax on discretionary trust distributions.

Welcome to Finance & Fury, the ‘Say What Wednesday’ edition where every week we answer questions from you guys.   Today’s question is from John;   “Thanks for the podcast and the content you provide. I thought a useful podcast topic could be the legislative changes Labour are proposing if they win the next election. Such as changes to franking credits, negative gearing and taxation of family trusts. I thought this could be an interesting topic considering these changes will possibly affect a lot of your listeners, especially small business owners who are operating as a trust etc - John”   Thanks John, that’s a good question, and great timing with the election between 33 days from now (if called on the day listening – min time rules) and May 2019 To start, here is a quick list of the policy changes, not including the bigger ones everyone is talking about; CGT Discount: Going from 50% to 25% (on new investments after 1/7/17). This applies to business as well. Superannuation: SG increase to 12% On one hand it’s good for people when they actually retire down the track…but not so good along the way Plus, open to legislation risk and provides tax surplus/infrastructure funds for the Government Non-concessional cap to be reduced to $75,000 No more borrowing inside Super anymore (SMSF) 30% contribution tax for those earning over $200k p.a. in total income (including super contributions) The Three Big Changes Removal of Negative Gearing According to the ABS, 21% of households owns a second home as an Investment property 35% of dwellings are investment properties (rental properties) Property may become less valuable in investors eyes Check out episode Furious Friday ep 27 https://financeandfury.com.au/furious-fridays-dissecting-labors-plans-for-housing-affordability/ and Say What Wednesday ep 33 https://financeandfury.com.au/say-what-wednesdays-housing-market-history-and-lowering-property-prices-sustainably-in-the-future/ Family Trusts – changes to distribution laws Implement a thirty percent (30%) floor on the taxation that applies to distributions made by discretionary trusts ‘Distributions cost $3.5bn to government in lost tax revenue’ How it works – You have investments (or Business) inside of a family trust Assets earn income (profits) which is distributed to the adult members who have the lowest MTR Under 18 years of age get TFT of $416 – then 66% and down to 45% Can’t retain earnings The Income splitting example that Labour gives: Sam is a surgeon and is married to Melissa who doesn’t work. They have two adult children who attend university and who also don’t work. Sam earns $500,000 a year from his work (pays tax PAYG) They have a discretionary trust with investments which generates $54,000 in income from their investments. They attribute $18,000 to Melissa and $18,000 to each of their two children, so no tax is paid on the $54,000 distribution as Melissa and the two children are each under the tax-free threshold. This represents a tax saving of $14,460 compared to if the investment income been attributed to just Sam and Melissa Total tax Sam pays on his earned income - $208,097 They only get to save $14,460 on investments If the new rules are bought in, then $224,297 will need to be paid in tax (40.5% compared to 37.6% tax on all income under the current arrangement) … They are paying a lot in tax! What people forget is this; “Sam” spent $200k-300k on becoming a surgeon, and delayed his earnings until his late 30s to early 40s. Also, being able to distribute to kids is very short lived $54k to Melissa = $9460 tax ($5k tax saved) Example 2 – A similar scenario with different earnings, and one I see more commonly; Sam earns $120k, Melissa earns $60k. They have 2 adult children earning $15k each while at uni. They split the $54k distribution between the kids. This results in $9,391 tax saved, compared to parents splitting the distribution 50/50 Total income = $264k, of which the family pays $56,468 tax to redistribute under the current agreement (rather than $65,859) Under new system the total tax will be $62,034 Some Issues Shorten admitted 200 thousand small businesses will be impacted – these are the people he is supposedly representing Tradies, and others, who use these structures for asset protection at no benefit to income in most cases Now they will pay a minimum 30% tax on their earned income rather than MTR Testamentary, disability and charitable trusts, deceased estates and other good will trusts will be impacted     The removal of Franking Credits   How Franking Credits work You own shares in a company, and as owner you are entitled to Profits (Dividend payments) Gross Profits come from Revenues – Costs (interest, expenses), Net profits = Gross Profits minus Taxes Profits are paid out to shareholders (minus what is kept by company) The dividend is received by individuals. The ATO assesses the Dividend + the Franking Credit ($1.425 instead of $1) If over 30% MTR, you get nothing back, under 30% MRT get something back The objective of the dividend imputation system is to eliminate double taxation of company profits - once at the corporate level and again on distribution as dividend to shareholders. More specifically, it is intended to create a "level playing field" by taxing the same activity in the same way, irrespective of the business structure being used, namely a company or trust, sole trader or partnership. This is equality.   Removal of Franking Credits will really only affect those in the tax bracket less than 30%, that is, low income individuals and Self-Funded retirees (Super) Pensioner exemption People on Benefit Payments from the Government will be exempt (back dated to May 2018) The plan is for equity but you’ll have people receive lower incomes overall if they aren’t receiving the pensioner exemption Labour Claims; “Distributional analysis has shown that for people of retirement age more than 80 per cent of the benefit of imputation refundability goes to the wealthiest 20 per cent of households” But how many retirees do you think own shares? It’s actually 22% of people over the age of 65. So, 80% of the benefits go to these people … because they’re not on the Aged Pension 70-77% of over 65 are on support payments (Aged Pension) It’s this “wealthy” 20% that are funding their own retirement. The rest are on government benefits. Current demographics - approximately 16% of Australia’s population is over 65. This is going to increase to more than 25% in less than 30 years. This new agreement degrades individuals’ ability to have a self-funded retirement and generate their own income… which puts them into the government support system instead. Self-funded retirees If the Franking Credit Rebate goes, the income from Australian Shares can drop by 30% (gross) Remember, we’re talking not just about SMSF, individual super accounts also benefit from franking credits Here’s an example; a husband and wife have saved hard, and have investments of $800k in shares (inside or outside super is irrelevant). This generates (based on a 5% dividend yield) $57,142 of income off Fully Franked shares and credits This drops to $40k if the changes get passed – loss of 30% of income This also applies if individual don’t have this in super – a lot of older Australians who are self-funded don’t have superannuation Reduces people’s ability to be self-funded in retirement, which is going to be an issue if the Government can’t keep up increased payments required – the $5bn to $10bn forward estimates on extra tax wont cover this increase in AP payments Long term – opens the door for removal of Franking Credits all together. There are only 3 countries left with them (Australia, Malta, NZ). Others removed them over the years. Soon it won’t be fair for someone earning $100k in dividends only to pay only a few hundred in tax ($42k paid by company already). If Franking Credits are removed an individual pays $27k of tax on top of the $42k paid by company Change of company behaviour – what if investors no longer value dividends? Or if companies prefer to reinvest income and pay less tax? American model – Reinvestment of funds better than double taxation of income = Capital gains > Dividends Biggest companies in USA have very small profits as they don’t need to pay investors income Alphabet (Google) = 0% at $785bn market cap, Amazon = 0% at $805bn MC – Second year $0 tax paid Facebook, Microsoft, Berkshire - Warren Buffett, believes it is more beneficial to allocate the company's earnings in other ways Reinvestment = CAPEX cost to business – more you spend less you pay in tax – especially if you fund it off debt – don’t need to make money to pay dividends Typically, companies not paying tax = no dividends Capital gains are fine – but you will pay more tax when you sell under 25% CGT discount Australian Market - unfranked 6.5% dividend yield on bank stocks – gross us 8% 9% yield they can get on US equities – Our index is 4.4% EU and Asia – about 3% average – Partial franking   What these policies will really hurt (Franking Credits and Trusts) – What’s not spoken about Small – medium businesses – 200k+ businesses trying to make it on their own (and employ others) Small businesses are set up in trusts – tradies pay themselves drawings out of the trust at MTRs Increase to 30% tax will means they now have to pay themselves super Increases to 12% in SG payments = Drop in what you can draw Disabled, Charity trusts – All payments will be 30% rather than 0% due to nature of structures Low income earners – Not on Income Support – no cash back Self-funded retirees Who this helps Large construction/trades companies Less competition long term – lower wages – limited to start something of your own effectively Industry Super Funds – Less competition in alternative choices More money flowing into super funds from SG increase No benefits from SMSF or   Love going through election budget promises – This budget is ‘fair go’ – going for equity (equalise outcomes) Not taking you is portrayed as a ‘cost’ – ironic – Costs in government language is not charging you tax beyond that they already do Not taking all income earned is a Trillion-dollar cost to them Everything is saying the budget is in deficit – true – so stop spending – Every year more taxes – to cover spending – ill cover this point in the future – but spending to GDP over 100 years is confronting   All of this is just another carve out for more money based around the argument of making things equitable (one rule for me and one rule for thee)   I don’t think it will just stop with this. – further complexity = more money needed to run ATO – Billions more in costs to collect tax – almost like debt collectors who take a large clip of what they get back   Thanks for the question John. If you have any other questions head to www.financeandfurycom.au and head to the contact page       Links https://www.charteredaccountantsanz.com/member-services/technical/tax/tax-in-focus/Australian-Labor-Party-Policies-for-2019-Federal-Election https://www.alp.org.au/campaigns/ https://www.alp.org.au/media/1276/2018_alp_national_platform_-_consultation_draft.pdf Share ownership stats https://www.asx.com.au/documents/resources/australian-share-ownership-study-2014.pdf  

In this episode Nathan and Glenn chat about strategies that could increase your age pension entitlement and also look forward to opportunities to get back your imputation credits if Labor's proposal is introduced.

Anarchist World This Week 20-2-19Corruption and franking creditsNursing homesLack of political willCoordinated corporate corruption - you wont see their crimes on CCTVAnd Much Much MORE. Tel: 0439 395 489Postal: PO Box 20Parkville  VIC 3052AustraliaEmail: anarchistage@yahoo.comPodcast: 3cr.org.auEmail Anarchist Worldwww.anarchistmedia.org

1) Earnings season - Telstra, CarSales, CSL, AMP, Super Retail 2) Another CEO bites the dust 3) QANTAS releases a credit card you probably can't afford 4) The Foolish Mailbag - The future of Insurance Brokers - Dividends and Franking Credits from ETFs See omnystudio.com/policies/listener for privacy information.

Join us, Tim and Dan, as we discuss what franking credits are, how they work and what may happen under the proposed changes. Tell your friends!

In this week’s episode, Senator Bernardi talks about the recent Banking Royal Commission, The New South Wales State election campaign launch and lead candidate Dr Greg Walsh, Peak Stupid LGBTIQ nonsense, A taxing conversation, We can fix things in Canberra if you vote for your Conservative Party Senate candidate, Online poker, Superannuation fund fees, Our health system, Labor’s Franking Credits tax, The fight against indigenous violence and abuse, Revoking citizenship, The drug scourge, Chemical castration of pedophiles, Foreign aid, In defence of Kerri-Anne Kennerley, History bits, A harder line on drugs

www.aussiefirebug.com/aff/ In Today's episode we chat about: - Trying to get friends on board with investing - Labors plan to remove franking credit refund - Private health Question (3:58) Hi, Have you had any success explaining investing to friends? I am 28 and have a number of friends who don't really invest at all, preferring to keep their money in the bank. I don't want them to miss out on all this good compounding but I can't sell investing to them. -Luke Question (10:33) Hey, Considering the market turbulence this week and the concerns around the possibility of a Labor Government win and removing Franking Credits refunds... Will your investing strategy remain the same for the next 12 months? Or are you planning on adapting to suit market conditions? Do you Dollar Cost Average or save up to buy in the market dips? Thanks, Daniel Question (20:22) G'day AussieFire Bug, Been smashing your podcasts over the weekend and got through about 3/4 of them. They have been amazing. What are your thoughts on private health insurance? Do you find it worth it? I know it does reduce the Medicare levy by a little, but is it worth it? Thanks AussieFire Bug, Michael

This week in The Money Cafe, James Kirby and Alan Kohler discuss the sharemarket, Kogan, the banks, the franking credits controversy, the US midterm elections and more. This week's podcast was brought to you in partnership with IG, a world leader in online trading, offering you access to over 15,000 global markets. Visit www.ig.com.au for more information.   See omnystudio.com/listener for privacy information.

Weekly Podcast from Elizabeth Moran - Education and Research Director at FIIG Securities

Welcome to Finance & Fury’s ‘Say What Wednesday’! Today’s question is from John; What are the tax implications of investing in shares, owning, holding, selling, dividends etc, does this vary to ETF, LIC etc? Is tax payable on the change in value year on year, or only when a profit or loss is realised? And does this change if they are held in a company or trust?   We’ll take a look at: Types of taxes Structures - Managed Funds, Shares, LICs and ETF Two types of taxes Income Tax – and Franking Credits depending on the investment Franking Credits (FC) – helps avoid a double taxation. Tax is paid at company level and then calculated alongside your personal tax to ensure tax isn’t being paid twice and that you’re paying tax on that income at your marginal tax rate rather than the company tax rate. Capital Gains tax   Income Tax Companies - Shares/LICS – Same thing really Shares/LICs pay dividends – the board sets the FC levels Shares – vary regarding dividends and franking credits LICs – Typically set a dividend and have FC attached   ETFs – work a little differently to Shares/LICs Australia – Franking credits are attached in most cases but are a flow through from the underlying shares Not going to be 100% Fully Franked International - International shares which get withholding tax taken out overseas 30% for US ETFs – can claim back 15% withholding tax from overseas income Capital Gains – ETFs as a trust – They don’t pay any tax – it flows through If they sell a share for a profit you pay the CGT – you do get the 50% discount though Managed Funds Income from managed funds are called distributions – made up of: Dividends – As normal – Underlying companies pay dividend then this passed on Franking Credits – offsets the income and comes from underlying shares Small cap managers might not have any FC if underlying companies don’t Capital gains realised – Either non-discounted (12 months) A highly active manager or geared fund can pay out large chunks of capital gains in a year if realised I’ve had a geared fund make 70% in a year in realised gains – and got a big tax bill ☹ What is best for tax efficiency? Typically Shares – Fully franked dividends Then the next most efficient are ETFs – Low portfolio turnover or passive/index and not as much capital gains tax paid out. Can have lower FF dividends compared to blue chip shares Lastly, managed funds – Typically higher tax payable due to distributions of capital gains Reinvestment plans of Dividends Even if you don’t get the income it is still treated as taxable income Reinvest $1,000 of Dividends – you still have to pay the tax on it as if you received it Capital Gains (The difference between the price bought and the price sold) ETFs/Managed funds – At a listed unit price – Net asset value – Sum of all shares Shares Shares/LICs are at a price per share sold vs bought ETFs – AS it is priced – same in gains Managed Funds – CGT is still possible when you choose to sell it but typically lower CGT – They pay CGT out to you along the way and you bear the pain along the way Tax environment – Depends on how they are held Personally – Marginal Tax rates Trust – Distributed Company – Best to not – you don’t get a CGT discount We went through a lot of information today – if you have any questions or want me to clarify things further please do get in touch. Head to https://financeandfury.com.au/contact/

Julian Campbell talks to Tony Vdray about franking credits and to Christina Gerakiteys about small business exposed.

Julian Campbell talks to Tony Vdray about franking credits and to Christina Gerakiteys about small business exposed.

Welcome to ‘Say What Wednesdays’, this ‘Say What Wednesday’ is brought to you by Adam and Tate, they both asked separate questions about the Franking credit issues and just to help clarify around that because Labor's announced some proposed changes to the Individuals Wealth Policies, one of them includes a thing called, Changes to Franking Credits.   This system for Franking credits was set up so individuals weren't taxed twice on any dividends that they received from companies that they owned. The other individual polices that Labor have introduced, or want to introduce, are to lower the income threshold for superannuation tax rates for contributions so, they want - if you're earning greater than $200,000 you are going to have to pay 30% on contributions to Super. They want to limit 0.5% increase to the Medicare levy for people earning over $87,000, lifting the top marginal tax rates by 2%, scrapping the first homeowners super savings scheme, restricting negative gearing for properties, halving capital gains tax discounts to 25%, removing refunds for the dividend imputation credits, which are the Franking credits, lowering non-concessional contributions to Super from $100,000 currently to $75,000 and remember a few years ago, $150,000. A few years before that it was unlimited, and they want to dump the ability to make - catch up contributions for any individuals with low superannuation balances and they want to remove the ability for anyone to make personal tax-deductible contributions.    So, it's very much an attack on superannuation and those on the higher marginal tax rates but Franking credits is one that's actually going to affect everyone because if you buy a share in a company you technically own that company then that company makes money, they pay tax on the money they make and then they have some profits.   With those profits they have two uses, they can either reinvest that money in themselves so they can purchase new stock or they can expand their business operations, hire new people or they can pay dividends, the profits, out to investors - all those who are in the shares in the business and the Franking credits were introduced to avoid the company paying tax and then paying profits out to the individual and them paying taxes as well.   Because, say a company has a $100 revenue, they pay their company tax rate of 30% they're left with now $70 of profit. If they choose to pay the full amount of profit, that's $70 out to an individual, if they're on the highest marginal tax rate that $70 is 35 to that individual. So, what was $100 is really now being taxed at 65% that the government's taken and the individual is left with 35, so that's what Franking credits were introduced to avoid but with the removal of that there's two separate issues, which are actually dragging each other into different directions, where it's actually bad for all retirees and it's actually bad for poor people as well. Where if retirees are in a situation where they're drawing income from shares whether that be superannuation or personally they're going to lose a lot of their net incomes because their either are going to have to pay more tax or they're not getting those Franking credits in cash back. And anyone who's on low marginal tax rates as well, they don't have any other investment income to offset their dividend incomes, they’re just going to be losing their Franking credits and increasing their effective tax rates from around zero to 30%.   So, it's a big change that really has many - many losers and a very finite number of winners …and when looking at the winners you can sort of tell who's driving this policy.   So, the losers - anyone who's invested in shares. That can be broken down, even Australian fund managers (people who professionally invest in shares for a living) they pass the Franking credits on to investors and that's a big incentive for people to buy Australian share funds. Also, the second biggest losers will be anyone who has a self-managed super fund or an individual wrap superannuation account where they receive Franking credits. You don't have to be a millionaire to have these, you can have a super balance with one hundred thousand and access direct Franking credits as an additional income to you.   But it's being targeted as just, again, lies. Of just painting that the wealthy are the only ones benefiting off this. But retirees are really, and actually those on low marginal tax rates, are going to be the hardest hit because anyone who's done an accounting 101 course knows that if you receive a dividend of say $100, you're going to be assessed as owning an income of the dividend plus the Franking credit. So, what you're really getting taxed on $142 anyway and then you get $42 back, so it's not like these Franking credits for the ultra-wealthy are just, you know “free money”, it reduces their tax a bit, but they still pay a lot of tax. The individuals not on high marginal tax rates, they're the ones really benefiting from this, and it seems like it's just disincentive anyone to really take the necessary steps to build their own wealth. Because when you look at the winners from this, the real winners from this are the industry funds because industry funds don't pass on those Franking credits to investors, they keep them and help to subsidize their own costs and taxes in the background.   Then another major benefit or winner from this policy is any property trusts or utility trusts or property investments because property trusts, they don't really pay much in tax. You don't pay much in taxes a company or a trust you can't really claim Franking credit if you haven't paid tax, so therefore they pay a lot of the distributions or incomes and dividends out as unfranked dividends because they haven't paid tax, or they can't pass it on. It's only going to be hurting the companies who are actually paying tax and then the investors who have invested in them.   So, the net effect of this it might be actually pretty similar to what we see globally with countries that don't have Franking credits, where companies do not pay much in dividend. You look at the average ASX listed company where the ASX overall has an average yield of 4.4% excluding that Franking credit. With a yield (say you buy the ASX300 share index), your yield will be around 4.4%. If you buy the U.S. index your yield will be 1.8%. So, it's less than half… and why? It's because the US doesn't get Franking credits. So, going back to what a company can do with it (profits) they can pay you, or reinvest in themselves. They pay you and you're going to just get double tax - no tax benefit back to you from what the tax the companies paid. Then it's not very much of an incentive to buy the share purely for income, which in Australia it really is. So, these companies might actually change their decisions on dividend policy and stop paying as much dividend and just decide to reinvest it in themselves. And shares are a big part of retirees or anyone's income source for passive income because property itself it doesn't actually give the best passive income when it's got debt against it and it's got additional cost because if you're looking for in retirement for big net cash inflow, and you have to own property personally and it's got additional running costs, agent fees, insurance, rates, you're looking at a fairly low yield compared to a share after all the tax and Franking credits are rebated.   So, this policy is really just punishing everyone to pay more in tax because anyone who has superannuation has Australian shares, industry funds have already been not passing this on so hey in anyone in an industry fund, you're not worse off. But anyone who actually has their own individual superannuation account like a wrap account which really anyone can get - it's not like a self-managed fund where you've got to pay thousands of dollars to have it set up - they're going to be missing out too. And all it is is just to grab more tax, pay more tax, so it's punishing people for doing the right thing and investing in their own lives to look after themselves in the future. It's just punishing them, and why? Well, the government obviously needs to feed themselves, create more money that they get which reduces the money that you get, which then creates more reliance them. But it's so counterintuitive because we've just gone through a massive shift of age pension changes where around three hundred thousand people lost their benefits. So, it seems like a massive tax grab where you no longer have any incentive to invest and better yourself with shares but at the same time, well good luck if you ever want to get on that age pension.   Out of this I've been inspired in the next episode to actually tell you all these dirty little tax loopholes that Labor and the uninformed keep harping on about because really, does the government deserve more money? …And we'll tackle that in the next episode.   So, thanks for the questions Adam and Tate and anyone else has any questions please leave them at financeandfury.com.au, if you just go to the contact page and type any questions that you have we can tackle them in another ‘Say What Wednesday’, so thanks for listening guys, and I hope you enjoy the rest of your day.

Episode 30– Who moved my cheese? Is Bill Shorten’s announcement about getting rid of franking credit refunds akin to a cat moving a mouse’s cheese? Is it necessary to repair the budget repair or thievery from retirees and self-managed superannuation funds? In this week’s episode we go straight to the top to get the answers.  I interview John Maroney who is the CEO of the Self-Managed Superannuation Fund Association, which represents both Advisers and Trustees of SMSFs. So whether you will be directly affected by Labor’s proposed changes, or just want some insight into the political process, you are certain to benefit from listening to this week’s show. “There could be several adverse economic impacts if this policy is implemented.” – John Maroney  “Franking credit refunds have been part of the tax framework for 18 years and a lot of people have made their long term investment plans around that system” – John Maroney  The median income that a member of an SMSF is drawing is  around $50,000 and the franking credits are $5,000 so this would cut 10% off the income of people who are generally not getting the age pension at all” - John Maroney  “People who are affected should write their local Member of Parliament. Traditional letter writing has become a lost art” - John Maroney  Today on the Finance Hour Podcast: The two groups that will be most affected if Labor’s proposal becomes law. The unexpected backlash from the announcement. Why John believes that the current system of refunding franking credits was good policy and was originally supported by both parties. How the proposal could affect valuations of Australian shares. What the Self Managed Superannuation Fund association is doing to influence Government. And don’t forget to listen all the way to the end for my “Propellerhead of the week” which  is about some strange entries on my credit card statement following from my return home from Israel. Mentioned Resources: SMSF Association John Maroney LinkedIn profile Labor proposal to ditch franking credit rebates Thanks for tuning in! Thanks for joining us on today’s episode of the The Finance Hour podcast! If you enjoyed today’s episode, please head over to iTunes and leave us a rate and review to help us reach even more listeners. Don’t forget to check out our website, visit us on Facebook, or hang out with us on Twitter to stay up-to-date on what’s in store for you! See omnystudio.com/listener for privacy information.