Political debate regarding the refunding of franking credits for those that don’t pay tax is starting to heat up.  I must have been asked by a dozen people what the hubbub is all about. 
 
“Can you explain simply dividend imputation, franking credits and double taxation”
 
It is a little complicated and I reckon the best way to explain is by example.  Let me know if this makes sense.

I've been waiting to use this story for some time. 

With the fairness of our tax system to be the focus in the lead up to the Federal election, I figured here's my chance. I'm not sure who wrote this originally, but all credit to them. It's a great analogy, and while the numbers may not be exactly right, the concept is.

Here it is, the 'beer' explanation of the tax system.

Once a decision has been made to buy an investment, it is important to consider the best investment structure to use.   An investment structure refers to the way investments are legally owned.  Many people simply purchase assets in their own name or joint names, when other ownership structures may be more suitable.

Winx, taxes and me having that extra helping of dessert are all pretty sure bets.

I reckon you can add a Federal Labor victory some time soon to that list.
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What will that mean for your money?  To their credit, the ALP have been quite open about their proposals. Here is what we know:

We have entered that time of year where the financial media goes into overdrive, providing more misinformation than usual.  The trigger is end-of-year predictions about next year.

They are meaningless.  And what’s worse, relying on them can hurt your financial well being.

I’ve been contacted by a couple of media outlets looking for predictions, as well as folk from the general public asking me to look into my crystal ball.
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Here were my answers. 

If there was ever an article I wished I’d written on the folly of listening to the daily investment noise, I wish it were this one.

Market volatility can create anxious moments for even the most disciplined of long-term investors. But people who make it through to their goals are usually the ones who can separate the feeling itself from the urge to act upon it.
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Understanding how markets work can make it easier to deal with volatile periods. Here is a layman’s explanation.

“Sellers were out in force on the market today after negative news on the economy.” It’s a common line in TV finance reports.

​But have you ever wondered that if there are so many sellers out there, who is buying? 

In Leo Tolstoy’s great novel ‘War and Peace’, a Russian general charged with defeating Napoleon and expelling the French from Russian soil argued against rushing into battle, saying the strongest of all warriors were “time and patience”.