who likes Labors policy to change franking credits?
Franking and refunds explained
Dividend imputation was introduced by the Hawke-Keating Labor government in 1987, to prevent so-called double taxation of company profits.
This meant that shareholders did not need to pay tax on their dividends, for which the company had already paid tax.
But there was a shift in 2000, when the Howard-Costello Coalition government amended the policy, making it more generous for SMSFs and self-funded retirees ā a policy which still exists today.
The effect of this change is that shareholders who pay no tax ā or pay a lower rate of tax than the company (30 per cent) ā can convert excess franking credits into cash refunds from the Australian Taxation Office.
When companies pay dividends, they can include franking credits (or imputation credits) for shareholders who can then use it to offset their personal tax.
Without franking credits, companies would be taxed on their profits, and individual shareholders would then be taxed on those same profits.
Shorten.
As opposed to what?
The defunding of medicare by stealth?
I donāt know what effect this will have on companies, but as for SMSFās, if this affects them then they must have an absolute shedload of shares.
And anyone who has that many shares is financially astute enough not to have just shares.
Soā¦
Iām in favour of cutting the areas that can afford to be cut.
Rudd the Second hacked at salary packaging.
Turnbull hacked at company maternity leave.
Iām kind of okay with those things.
And Iām kind of okay with this.
Seems to me itās getting the top end to chip in a little, as the middle have been in those previous two changes.
As for Turnbullās āattacking pensionersāā¦I mean thatās Trip-level stupid.
Oh yeah, all the pensioners I know are frigginā rolling in shares.
Come on, if they were then they wouldnāt be pensioners!
Surely thereās no-one in the country falling for that one?
When I started my business and found the need for an Accountant, I used to visit him about once a year and he would buy me lunch and we would talk about footy. He is a Bomber supporter who once was a footy player manager, so has lots of stories. Now I seem to have to visit him many more times to discuss tax matters and how to not pay as much; legally of course. We no longer have lunch and he is too busy to talk about footy.
The tax system is farked, and things like this Labor policy change just show how farked. I have tried to get my head around it and it is wordly, complicated, written by Accountants and Lawyers for Accountants and Lawyers to make lots of money charged to prikks like me.
It is well past time, to throw it all out, and start again with a much more simple model that has universal equality. Owning a business or family trust, should not give you benefits that all tax-payers cannot get, and retiring to large passive incomes through self managed funds or owning shares should not give you a tax refund for no tax paid.
When I was at a accounting conference, Another accountant said that some of their clients 1.6m+ super balances were saying that they felt guilty and should be chipping in more to the country, given they had tax free SMSF pensions.
I sent a similar proposal suggesting that they change franking credits to a tax rebtate to Morrison the treasurer, and didnt get a response.
Companies pay tax, People arenāt double taxed.
If old age Pensioners get franking credits, well, it means they still have some old AMP shares from when they got given them from their insurance policy and now they no longer need to lodge a tax return.
However this may effect joe punter whose super fund pays 15% tax, and get franking rebates at 30%
still their are a lot of rich old gits whose superfunds pay 0% or close to and get the franking credits back as a tax refund.
This would also be a lot easier to police and administer than the 1.6m cap and other superfund changes they have made.
Dutton is exploring ways to help āpersecutedā white South African farmers settle in Australia.
The thing I keep laughing at is I keep getting lumped in with all the wealthy due to my interest action of using the tax policy to my advantage.
Im just an ordinary joe who through reading being interested reading informing myself then asking people who specialise in this area how to do it.
Yes I have SMSF set up yes I salary sacrifice but wow I did work ā ā ā ā ā ā hard for 25 years to set myself up for an early retirement.
anyone can set up a SMSF its just thet people are lazy or donāt want to make the effort to do itā¦its like power bills gee I pay too much but I cant be assed to ring around to get a better deal.
Youāre not getting lumped in with the wealthy.
Youāre getting lumped in with middle-class welfare.
Not like the Rohyngas, who wouldnāt fit in.
Good point.
Shouldnāt go on appearances but was there ever a bloke who was born to don a brown shirt more? Actually most of the Oz parliament for the last decade would look comfy in the various regalia of the Reich come to think of it. (No right wing nuts, Iām not calling them Nazis, more like Hoganās Heroes baddys)
Oh, also, why the ā ā ā ā not?
āThe home affairs minister, Peter Dutton, is considering establishing a committee to allow gun importers to review proposed changes to firearm regulations for āappropriateness and intentā.
Following a meeting with a pro-gun lobbyist in February, Dutton is weighing up whether to establish a so-called āfirearms advisory councilā, which the gun lobby says would give it āa seat at the tableā to advise the government on firearms policy.ā
Didnāt Abbott try something similar late in his tenure as PM? They discussed IIRC on Q&A.
Why bother, when Bridget McKenzie ( our Sport Minister) is acting as their spokesperson in the Coalition. She charged the taxpayer for electoral expenses to appear at one of their conferences
Apartheid was wrong, but so is forcibly removing people from their land because of the colour of their skin. I gather the ANC is looking at changing the SA constitution to allow land to be seized without compensation Zimbabwe-style. Its a complex issue, but on face value (so to speak), I donāt think todayās white farmers should be made to pay for the sins of Apartheid. So yeah, if this is the situation, I can see Duttonās point. But of course assessing the urgency of their case relative to others in need of asylum is a whole other thing.
Dutton also getting in bed with gun lobbyists to relax the gun laws.
Even I do not believe that beno.
Hmm, I reckon the South African Government should go the whole way. Nationalise all the farms, make the Afrikaners stay and work there for a wage, and not let them leave South Africa with one gold rand or diamond.
Except if their Sons are good at rugby or cricket and become Australian.
Well, Iām heading there later in the year for a three week holiday, so it will be interesting to get the vibe 1st hand.
I do.
Despite the scare campaign about it, there are only 14,000 people on full pensions that would be affected and about 200,000 on par pensions.
This plan is expected to save $5 Billion/year. That means those 200k people are getting about $25,000 each a year as a free payment from the rest of Australiaās taxpayers. In addition to their pension.
The Tories will ramp up the fears on this, but it affects a minority of pensioners, who just maybe should not be getting it anyway.