A lack of knowledge about how Australia’s franking credits system works means many,like my cousin,could be sitting on surprise payouts.
As the Coalition argues the government cannot be trusted on income tax changes,independent MPS and a former Labor luminary are encouraging an examination of the entire tax system.
Time and time again,people have told me they want to invest in shares. My response has always been the same.
Wilson Asset Management chairman Geoff Wilson says the government’s bid to bolster its finances will backfire and leave a $1 billion hole in the budget.
The Senate review of government franking credit proposals has put the issue back in the spotlight.
The franking credit dispute helps the Coalition build an argument that Labor has reneged on commitments not to touch contentious tax policies. Labor has accused it of a hysterical scare campaign.
The proposal to prevent companies raising cash equity issues to fund a franked dividend payout has no economic logic to it.
Assistant Treasurer Stephen Jones will announce changes to close a loophole.
For such a fiercely debated topic,there are many Australians don’t understand how franking credits work at all.
The chances are that off-market share buybacks will be abandoned by large companies such as banks and resources groups.
Three long years have passed since Labor’s original measure received detailed scrutiny,and it’s appropriate to revisit the reasons why it was bad policy then.