PZ99
( ͡° ͜ʖ ͡°)
- Joined
- 13 May 2015
- Posts
- 3,312
- Reactions
- 2,413
No, but your article does 
White knight to F3...
White knight to F3...
How to avoid Shorten's plan to abolish the refund of excess franking credits
- Thread starter bigdog
- Start date
Tisme
Apathetic at Best
- Joined
- 27 August 2014
- Posts
- 8,954
- Reactions
- 1,152
No, but your article does
White knight to F3...
Yes, but I expect you of all people to see through the mist ..CM
PZ99
( ͡° ͜ʖ ͡°)
- Joined
- 13 May 2015
- Posts
- 3,312
- Reactions
- 2,413
Oh I saw through it alright. Australia is still going all the way with PJK by proxy, yeah?
Fair bit of nonsense in this thread.
In the scenario put up by Skayte, Dividend Davina gets $2,000 return on her $100,000 of shares, then has to pay tax on that?? The company paying the dividend has already paid the tax, so she is entitled to the franking credits. Now if the franking credits are cut out by Bill, it is no loss to her really, because it was a gift from Howard, and it is not really earnt.
In the scenario put up by Skayte, Dividend Davina gets $2,000 return on her $100,000 of shares, then has to pay tax on that?? The company paying the dividend has already paid the tax, so she is entitled to the franking credits. Now if the franking credits are cut out by Bill, it is no loss to her really, because it was a gift from Howard, and it is not really earnt.
Tisme
Apathetic at Best
- Joined
- 27 August 2014
- Posts
- 8,954
- Reactions
- 1,152
You got it and the cabal of players who supposedly dislike each other in public.
I must think Tisme has a point for, so far, I don't see anybody objecting to removing the refunds and hitting pensioners hard, except us,... Looks to me like everybody up there is agreeable to this 'small issue',...
PZ99
( ͡° ͜ʖ ͡°)
- Joined
- 13 May 2015
- Posts
- 3,312
- Reactions
- 2,413
Here you go fellas...
https://www.theguardian.com/austral...aims-labor-robbing-pensioners-with-tax-policy
http://www.afr.com/news/labors-fran...y-on-the-run-malcolm-turnbull-20180325-h0xye7
http://www.abc.net.au/7.30/malcolm-turnbull-attacks-bill-shorten-on-his/9573694
I'd say the Govt is VERY much against the idea.
https://www.theguardian.com/austral...aims-labor-robbing-pensioners-with-tax-policy
http://www.afr.com/news/labors-fran...y-on-the-run-malcolm-turnbull-20180325-h0xye7
http://www.abc.net.au/7.30/malcolm-turnbull-attacks-bill-shorten-on-his/9573694
I'd say the Govt is VERY much against the idea.
Everyone under $20k income qualifies for the income test. But those who don't qualify for the assets test own too many liquid assets. All you have to do is sell those liquid assets and put them into your residential property to get under the threshold. From there you get your excess franking credits back plus $20k in government payments. I bet Bill didn't expect that.
Thank you PZ99,... this is very useful indeed.
The euphoria looks like it has died down since Mar 22nd last month,... no more activities towards hitting out at this matter. Going through the materials a little more, has Labor officially decided to give out a maximum of $1000 franking refund as a way to mitigate 'damage' to the true low-income retirees ?
Tisme
Apathetic at Best
- Joined
- 27 August 2014
- Posts
- 8,954
- Reactions
- 1,152
Nah, that's just the gratuitous response. The lack of desire of News Ltd to keep it on the front page tells the story.
- Joined
- 2 February 2006
- Posts
- 14,009
- Reactions
- 2,892
Abolish taxation on dividends and abolish franking credits at the same time. Reduce taxation on company profits as President Trump's administration has done - and tip the franking credit rubbish as well.
- Joined
- 26 March 2014
- Posts
- 19,887
- Reactions
- 12,305
Why should people who work for for a living have to carry all the the tax burden while investment income gets no tax applied ?
- Joined
- 2 February 2006
- Posts
- 14,009
- Reactions
- 2,892
That's how it is in Hong Kong and The British Channel Islands. Of course, many other sensible parts of the world as well.
Wysiwyg
Everyone wants money
- Joined
- 8 August 2006
- Posts
- 8,428
- Reactions
- 284
Yes but if any receiver is on a higher marginal tax rate than the company they should be taxed the difference.
- Joined
- 15 November 2006
- Posts
- 1,205
- Reactions
- 678
Trump is blowing out the budget deficit and public debt levels (Debt-GDP expected to reach levels not seen since WWII), with no plan or strategy to ever reduce it. Incredibly short-sighted, and the next administration will have to figure out how to reign it back in.
Tisme
Apathetic at Best
- Joined
- 27 August 2014
- Posts
- 8,954
- Reactions
- 1,152
If dividends were unfranked, would the superannuants get a cheque back from the tax dept?
I guess we could argue that wages earners have the employer pay tax on their behalf and the refunds aren't credits, but cash.
I remember imputation a statistical substitution.
I guess we could argue that wages earners have the employer pay tax on their behalf and the refunds aren't credits, but cash.
I remember imputation a statistical substitution.
One way of looking it is dividends actually came from company profits. If company profits have been taxed, why tax at shareholder's level again ? It would suffice to tax just at company profits level, and save all the time and work of taxing at the lower level,....
- Joined
- 8 June 2008
- Posts
- 12,773
- Reactions
- 18,677
especially as the number and complexity of numerous shareholders for each company would make it so much easier , trouble is the company will p.ss off toward better pasture O/S , or should it be stuck here due to its business just ramp up its price and margin with the aussie customer paying the higher price oops..sorry this is already happening....
Value Collector
Have courage, and be kind.
- Joined
- 13 January 2014
- Posts
- 12,191
- Reactions
- 8,432
When a worker earns $10,000 =($7000 paid in cash + $3000 withheld as tax)
When they do their tax return, they will get the $3000 that has been with held as a tax refund, because they earned under the $18k.
When a share holder earns $10K = ($7000 cash dividend + $3000 franking credit), the new plan would not allow them to receive their refund.
I think that would be unfair, every other type of earnings is tax free up until $18k, this plan unfairly eliminates tax free allotment for low income earners just because the earnings happen inside a company rather than another structure.
Value Collector
Have courage, and be kind.
- Joined
- 13 January 2014
- Posts
- 12,191
- Reactions
- 8,432
You are right it should be one or the other,
I think the fairest system is the current system, it allows the profit to flow through to each shareholders tax return where it’s taxed at their rate,
High income earners pay a higher rate lower income earners pay a lower rate.
