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Subject to personal advice, available strategies etc it may be. I have seen some small business retirees with huge franking accounts just draw a FF div every year for years and claim the refundable franking...That's a nice strategy too.

I referred to the main issue....More tax. The shareholder is taxed on the FF div. The shareholder then pays more tax less the credit for company franking credits. Final effective tax rate up around 58%. That's worse than just facing the tax at 49%. Someone is sure to now say - That's the...

And if you tell them that a large super contribution (or two with a spouse) can lower the marginal rate to 15% they argue they don't want it in super. Five years later they have missed $350K of potential accumulated savings. Personally I reckon face the tax personally and take the income and...

Lets assume a trust with just $100 of trust income. Its a $100 FF div....Received in cash from BHP. Tell me what the $ value that the trustee must distribute? Is it 1. $100 2. $130 3. $142.85 4. Nil ...The trust made a loss after allowing for the prior year tax agent fee ? If you...

Yes and no....A trust makes beneficiaries entitled to a share of trust income by following the trust deed, trust law and the terms of the deed. The beneficiaries may be paid their entitlement later. If the rtsutee doesnt distribute correctly the ATO will allege that the distribution wasnt...

And what is the extra tax paid by the recipient ?? Up to 28%... Hence a final rate of 58% or more....I wont do the maths. Maximum tax rate is MUCH higher than 60%. A bucket company approach generally = more tax. Its the dumbo scheme for dumbo accountants to suggests to even dumber clients...

What is the income of the trust estate for the tax year ?? Get that wrong and it wont matter. Generally speaking if trust income is not distributed by way of entitlement (not payment), the income is assessed to the Trustee at the default highest marginal tax rate. There are ways to defer...