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Distribution and TFTs

Discussion in 'Managed Funds & Index Funds' started by DaveA, 5th Apr, 2007.

  1. DaveA

    DaveA Well-Known Member

    Joined:
    19th Feb, 2007
    Posts:
    617
    Location:
    Sydney, NSW
    i have just recieved my 1st distribution from my managed fund. Anyway the amount recieved is lower than i calculated it to be.

    The difference works out to be 46.4%, i have not quoted my TFT number to the fund, so is this amount the top marginal tax rate withheld? Seems to be about the right figure but i hope its not the case....

    The dividend has franking credits attached to it, should this have some effect on how much tax they withhold if they are doing that??

    Cheers guys
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    I think you might be right there - if you don't quote your TFN, the fund is obliged to withhold 46.5% tax from any distributions. You can claim this back at tax time.

    I suggest you quote your TFN !!