Jon James

Wake-up call for investors facing lower returns in Labor franking plan

Wake-up call for investors facing lower returns in Labor franking plan

Under Australia’s system of dividend imputation, shareholders receive franking credits to account for tax paid at the corporate level, which in most cases is 30 per cent. Credits can be used to offset tax owed by the shareholder.For people who pay little or no tax (such as superannuation funds and retirees), excess franking credits are…