While I'm yet to observe a popular way for governments to tax the masses, Labor's proposals on franking credits has focussed the attention of one very local and agitated demographic in particular: wealthy retirees with the time and inclination to rile the boffins that have suggested such an impost. Show More
The ALP proposal to limit refunding of franking credits will clearly impact pension phase self-managed superannuation funds (SMSFs). We believe it has the potential to impact many other superannuation funds. In this paper we build a model of the key variables which determine whether a superannuation fund is likely to... Show More
The ALP’s proposal to ditch franking credit cash rebates evoked an emotional response from self-funded retirees, sparking substantial analysis and debate on the issue. While there have been few developments to the policy proposal since it was announced in March Livewire spoke to Dr Don Hamson from Plato Investment Management... Show More
Much has been written about the plan by the Federal opposition (likely to be the next Government) to abolish franking credit refunds. Along with removing negative gearing for existing housing and a 30% minimum tax rate on family trust distributions, this amounts to a three-pronged attack on Australian investors. Show More
There are no free lunches in finance, but for Australian investors, franking credits can be the next best thing. Luke Cummings, Chief Investment Officer at Harvest Lane Asset Management, says that many M&A transactions are structured to include a fully franked dividend as part of the headline price. Australian investors... Show More
In March this year Bill Shorten pledged that should Labor win the upcoming election they will axe cash refunds for excess imputation credits paid to individuals and in superannuation funds. This would reverse the cash refund of imputation credits introduced by John Howard two decades ago. It would also be... Show More
Yes, yes, we’re all sick of talking about politics so we’ll be short and focus on four key considerations that could impact your investments if the bookies are correct and Labor win the next election. Show More
The recent by-elections should serve as a warning to investors reliant on franking credits for income. Significant swings to Labor while the Liberals stand by corporate tax cuts, increase the chance of a Labor victory and, with it, Labor’s stated policy of removing franking credit refunds to investors who do... Show More
There is no doubt that Australia’s franking system has lots of flaws. Today, we are one of the few countries in the world which maintains a franking system, and probably the only one that has cash rebates of franking. Show More
The increasing gap between US dollar Libor and overnight index swaps (OIS) this year is garnering much attention as it was one of the earliest signs of problems in 2007. Libor is a compilation of the interest rates that major global banks charge when lending to their peers. The OIS... Show More
Bill Shorten caused quite a stir last week as Labor proposed a policy of removing the cash refunds for franking credits that some investors currently receive. While the changes affect a relatively small number of people compared to the broad Australian taxation system, it’s hard to ignore the serious impact... Show More
SMSF expert, Tony Negline gives his unique view of the proposed Labor Party changes to claiming franking credits. He provides suggestions on structuring your SMSF and how to utilise your franking credits. Show More
The announcement by the Australian Labor Party (“the ALP”) of its policy shift to stop the cash rebate of franked dividends was predictable … and is alarming. Show More
Labor's Batman by-election win in Victoria makes its proposed changes to franking rules more promising. It's a good time to reassess your investment decisions and potential loss of income, especially if you are invested in hybrids. These securities are expected to be less attractive and prices to be more volatile Show More
Caltex (ASX:CTX) shares added value in May as investors began to revisit this name. Show More
We have all heard about dividend imputation and franking credits. However, my experience is that if you ask an investor to calculate the benefit after tax, most will struggle to do it correctly. Here is a quick and easy guide to dividend imputation that you can bookmark for future reference.... Show More
What did the latest reporting season tell us about the course of future dividends? The season continued the theme, which started in 2012, of dividend growth outstripping earnings growth. During this period, listed Australian businesses have generally focused on “cost-out strategies” rather than investing for growth through the business cycle. Show More
Dr Don Hamson, Managing Director of Plato Investment Management, says there are a number of characteristics that have made the ASX an attractive market for income investing over a long period of time. For retirees the franking credits system means that the current income level is around 6.1% - making... Show More
A new wall of super money is set to radically alter Australia’s investment market and returns. The Australian market is being hit by a compounding wall of superannuation money, which we think will significantly alter the outlook and composition of returns for the next decade. This has serious implications for... Show More
Putting aside arguments over the strengths and weaknesses of Australia’s dividend imputation system, what would be the impact if it was abolished? The franking system was implemented in the 1980s to prevent business profits being taxed twice: once at the company level and then again when shareholders receive dividends. By... Show More