Australia heads to the polls this year for a federal election, most likely on 11 or 18 May. While voting intentions tend to narrow and tilt toward the incumbent as polling day draws closer, current voting intentions suggest there will be a change in government this year from the Liberal... Show More
The Federal Labor Party has stated it would change the dividend imputation system if returned to power this year. This is expected to see a spike in the number of off-market share buy-backs. The big question for investors is: should you participate? Show More
Australia heads to the polls this year for a federal election, most likely on 11 or 18 May. While voting intentions tend to narrow and tilt toward the incumbent as polling day draws closer, current voting intentions suggest there will be a change in government this year from the Liberal... Show More
The negative effects of ALP policies on housing, SMSFs and profit margins are already impacting certain sectors of the market, such as banks, residential property developers, homebuilders and retailers. Show More
Labor’s proposed tax changes could result in investors experiencing a decline in income as many may be unable to redeem surplus franking credits. For such investors holding bank hybrids it is tempting to consider that shifting to bank subordinated debt may be the answer. But is this really the case? Show More
Forecast for shares income, including from the banks, remains solid. For the “glass half empty” thinkers, there is plenty of bad news to focus on in 2019 – the Trump trade war, Brexit, falling house prices, the final report of the Financial Services Royal Commission, political risk and more. Show More
In our previous paper entitled “Which superannuation funds may be affected by the ALP franking credit proposal” we found that members of many superannuation funds, not just SMSFs, may be impacted by the ALP proposal to no longer refund franking credits. In this new paper, we consider which individuals, investing... Show More
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
