Rather than imposing a straight fine, taking away franking credits would ensure shareholders feel more pain when companies misbehave.
Westpac and the ANZ have suspended dividends payments. The National Australia Bank has slashed them. The peculiarities of our tax system explain why retirees hate this more than they should.
Those who’ll miss out the most have very high wealth.
It's the highest earning most wealthy shareowners who'll be missing the cheques.
Taxable income tells us little about who benefits from imputation cheques.
Retirees with superannuation balances of $1. pay and pay no tax and get annual imputation cheques of $63,000.
Morrison appeared at a forum of seniors in the Victorian seat of Corangamite.
Both sides have different perceptions about how what the government characterises as a “retirement tax” - the franking credits change – will play out politically.
While Scott Morrison remains preferred PM, Labor maintains an election-winning two-party preferred lead in the latest Newspoll.
The latest polls show Labor holding a solid lead over the Coalition, while seat polls show that Tony Abbott may struggle to retain his Sydney seat.
There are words you’ll need to understand. But imputation is complex, like the tax system.
Wes Mountain/The Conversation
If you can understand this, you might just understand the election. Here's our quick guide to the language of dividend imputation.
Chris Bowen will deliver his first economic speech of the year.
Shadow treasurer Chris Bowen will pitch to many workers' discontented with their lot, declaring in his first economic speech of the year that these people are being denied “a fair go”.
The government in general remains in bad shape on multiple fronts, and.
Scott Morrison often sounds desperate.
Though it is generally believed a minor miracle would be needed to rescue the Morrison government, the Coalition judges the best way to “save furniture” is to wave the fear flags.
The opposition initially said it would not change its plan but would ensure pensioners were protected in other ways.
Labor has capitulated to pressure to exempt pensioners from its plan to end cash refunds for dividend imputation credits.
Not quite so optimistic.
Two government claims about the apparent boost to the economy of company tax are put to the test.
George Bush’s infamous Bush Tax Cuts have dogged America’s finances ever since.
In 2003, US President George W. Bush campaigned on a 10-year ‘economic plan’ for "jobs and growth". If it sounds familiar, it should.
Australia’s relatively high corporate tax rate is said to deter foreign investors while the dividend imputation system does nothing to attract them.
If our dividend imputation system makes it unattractive for non-resident investors in Australian companies, why not extend tax offsets on franked dividends to them?
Dividend washing enables some domestic investors to essentially gain a dividend “twice”.
Image sourced from www.shutterstock.com
There is currently considerable interest in the practice of “dividend washing”. This refers to the practice of investors being able to trade shares cum-dividend for a period after the ex-dividend date…