How does the exemption for small investor holders work? Is the entitlement of $5,000 franking rebate per equity or for all franking rebates recieved from all sources for that financial year?
Hi WishIWasAGeek, You can be if you want to be... The answer you are seeking is found Company tax and imputation - franking credit trading rules - questions and answers "...Under the new rules, the exemption applies to all individual taxpayers with a total franking entitlement of $5,000 or less." Cheers, Dan PS This is general information, speak to your accountant or tax adviser.
what about SMSF? with stat. formula?? Thanks heaps for your reply - I couldn't find that page on the ATO site when I searched. so that's individuals sorted - BUT What about a complying SMSF? The master financial planning guide says "Entities such as complying superannuation funds...can elect to be taken to be qualified for franking credits or rebates up to a limit calculated in accordance with a statuatory formula" well I found this: Tax Office releases franking credit and rebate yields but I'm none the wiser cause - what's the $limit for a "large" portfolio, plus this link is related to 1998 - any more up to date info?? Thanx in advance
Yeah, that's old, it talks about 36% corporate tax rate which was around in 1998. Nowadays (2009) it's 30%. If you have a SMSF it's wise to talk to the adviser who helped you set it up. Is this for an assignment as your quoting master financial planning guide? Dividends paid to a normal super fund, would also receive halve the franking credit back (eg, the difference between the corporate tax rate and the super fund income tax rate = 30% - 15% = 15%). Cheers, Dan
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