For every seller of Aus shares there must be a buyer. Zero sum game. A chance for others to get good value.
Yeah, and the buyers that will come in to fill the vacuum will be foreigners, most Aussies already complain about to much foreign ownership, taking away a chunk of the retirement savings will just make it easier for more companies to be sold to foreigners
...And companies shouldn't pay tax because...
So remove dividend franking for foreigners.
I thought they weren't entitled to them anyway?So remove dividend franking for foreigners.
Companies are just conduit from which individuals can make investments.
I think charging a 30% tax on profits retained by the company and reinvested to maintain or grow the company is Fair.
While I also think the portion of those profits that get paid out to the individuals as dividends should be tax at the persons tax rate, which ranges from 0% to 45% depending on that persons situation.
The current system achieves exactly that, the profits paid out are taxed at the individuals tax rate, while those retained are taxed at 30%.
I really see no difference between a bond holder taking advantage of his $18,000 tax free threshold and a share holder doing the same.
How does it do that?
Do we want our public companies to reinvest the majority of profits, to invest in people and expand their operations, or provide incentive to pay profits out to dividend-hungry shareholders who want the tax credits?
By handing back tax paid by the company to shareholders.
Companies are just conduit from which individuals can make investments.
I think charging a 30% tax on profits retained by the company and reinvested to maintain or grow the company is Fair.
While I also think the portion of those profits that get paid out to the individuals as dividends should be tax at the persons tax rate, which ranges from 0% to 45% depending on that persons situation.
The current system achieves exactly that, the profits paid out are taxed at the individuals tax rate, while those retained are taxed at 30%.
I really see no difference between a bond holder taking advantage of his $18,000 tax free threshold and a share holder doing the same.
Companies are just conduit from which individuals can make investments.
I think charging a 30% tax on profits retained by the company and reinvested to maintain or grow the company is Fair.
While I also think the portion of those profits that get paid out to the individuals as dividends should be tax at the persons tax rate, which ranges from 0% to 45% depending on that persons situation.
The current system achieves exactly that, the profits paid out are taxed at the individuals tax rate, while those retained are taxed at 30%.
do you really think its fair to treat a bond holder differently from a shareholder?
If a company makes $1b/year, why should it pay no tax because it happens to be owned by a bunch of retirees? It's a for profit enterprise that uses all the public services afforded by the state (roads, rails, ports and on and on), relies on the education system to turn out a literate workforce, benefits from the rule of law and the enforcement of contracts.
How are they being treated differently? Both receive the tax free threshold.
let me change two words and see if you can understand my point.
If a Bond issue makes $1b/year in interest, why should it pay no tax because it happens to be owned by a bunch of retirees? It's a for profit enterprise that uses all the public services afforded by the state (roads, rails, ports and on and on), relies on the education system to turn out a literate workforce, benefits from the rule of law and the enforcement of contracts
let me change two words and see if you can understand my point.
If a Bond issue makes $1b/year in interest, why should it pay no tax because it happens to be owned by a bunch of retirees? It's a for profit enterprise that uses all the public services afforded by the state (roads, rails, ports and on and on), relies on the education system to turn out a literate workforce, benefits from the rule of law and the enforcement of contracts
Bond holder earns $18,000 in interest - Pays zero tax
Shareholder earns $18,000 in profit - pays $5,200 in tax
Your point makes no sense.
It makes perfect sense.
The Bond holders of Woolworths, would be able to pay 0% tax on their portion of the companies output paid to them as Bond interest if they are below the tax free threshold.
Where as the share holders of Woolworths have their share of the companies output taxed at 30%, even if they were below the tax free threshold.
It makes perfect sense.
The Bond holders of Woolworths, would be able to pay 0% tax on their portion of the companies output paid to them as Bond interest if they are below the tax free threshold.
Where as the share holders of Woolworths have their share of the companies output taxed at 30%, even if they were below the tax free threshold.
It's a means by which to raise capital.
If the bond-issuing company uses that capital and generates a profit using those funds, then company tax will apply.
If it uses some of those funds to pay wages, then income tax will apply also.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?