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JonnoH

12,970 Posts.

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19/12/18

10:10

Post #: 36902759
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Originally posted by jimace ↑

Originally posted by JonnoH
" Your argument that they paid no tax because the company paid it on their behalf just doesn't work. "

I am not talking specifically about the company as being the 'people who do pay tax', more generally anyone who pays tax to the government to provide services for our society. The more we give away to non taxpayers, the more we have to collect off taxpayers (being individuals or companies).

Companies DO NOT pay tax on a shareholder's behalf.

Company earnings that are earmarked to be dividends have Company tax taken out ( 30 % ). This is in effect a tax on dividends. Franking credits allow the shareholder to get that payment back. Normal personal tax applies on franked dividends, levied as if no Company tax was taken out. I Know - I used to work in tax accounting.

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That is the way it is effectively working but is an unsustainable giveaway of tax paid to people who don't pay any tax.

Unfortunately many have spoiled it for the average retiree by milking the system dry. These are the unintended consequences of the Howard/Costello changes to super.
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