12% yield with franking credits!, page-26

Hi wang

Labor only plan to remove REFUND of excess imputatiin credits. Franking will still exist, but pretty much back in its original form as set down by Keating
Really shouldn't have much of an impact (if any) on any of the banks share prices, IMO.

At last a sensible post on franking credits!

Question for you wang.

There is a lot of dishonesty in the discussion of returning of franking credits to SMSF in cash. Remember the dividend they get is still 100% of the dividend issued.
A lot of smart SMSF have invested in overseas shares. They didn't look for the govt hand outs. Smart investors don't invest primarily for tax purposes. As you may be aware, most countries will deduct with holding tax on dividends paid to foreigners. So by and large if you have invested overseas, you do not get 100% of the dividend paid. There is a true withholding tax deducted. Yet once in pension mode, the ATO will tell you that because you are earning "Exempt Income" as distinct from "Taxable Income" you are not entitled to the withholding tax paid overseas. Whilst in accumulation you will get a credit for it.
Yet I do not see anybody complaining about this.
Why do you think that is?

Pear