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.
What will that mean for your money? To their credit, the ALP have been quite open about their proposals. Here is what we know:
This year’s Budget has an emphasis on retirement planning and contains several important considerations which may affect both retirees and pre-retirees, explored further below.
Remember, these are not Law yet, and could change because of the argy bargy of politics
Ask any business owner who their top three most trusted sources of information are for their business and nine out of ten will have their accountant in that list. In fact, in most cases the accountant rates as number one.
There's a daily guessing game underway on upcoming changes to superannuation regulations.
Annual contribution limits, transition-to-retirement arrangements and tax thresholds appear in the spotlight. The drums are beating harder for change than I can remember in a long time.