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About 10 years ago, I think? Significantly increased the value of franking credits to low income earners. The technical definition is that part of the buyback price is 'capital' in nature, with the rest being a franked dividend. A technicality, but an important one, in that the franking...

Yes, you can own shares in a trust. You can also own a negatively geared property in the same trust and offset tax losses from property against dividends. In practice, this isn't a good idea, because 1) franking credits are lost if not distributed from a trust, and a trust can't distribute if...

Capital losses are treated as a special type of loss. Capital gains and capital losses are both income concepts, though. Franking credits is a tax CREDIT, reducing tax payable. Reducing taxable income and reducing tax payable are very different things. This stuff is pretty black and white, if...

Correct. It's a way to 'avoid' paying the 66% marginal rate for kids, by accepting the withholding tax deducted where a TFN is not provided. But this only applies for interest income and not, say, dividends. But even at 46.5% marginal there's no advantage to holding savings in a child's name...

Yes, it does, but probably not in the way you mean as I think you're confusing taxable income with tax payable. The order of the calculation is different. The tax office doesn't say 'this is how much tax is payable on the dividends, deduct the franking credits, then we calculate tax payable on...

Kids pay a higher rate on non-earned income anyway, much higher than adults. The low income earner getting a bigger benefit thing is because low earners often pay less than the 30% marginal rate and so get dividends refunded. Kids pay 66% marginal from $417 income onwards. Buying bank shares...

The calculation of taxable income, tax payable and ultimate tax payable at lodgement are separate calculations, with tax payable having no direct relationship to tax payable at lodgement. (In the sense that having more tax credits doesn't actually affect your total tax payable, but of course...

While all this is true, excess franking credits are refunded to the individual. Your statement 'not having to pay tax' is misleading. You're saying 'you wouldn't get a tax bill when you lodge your return'. Tax has already been paid via corporate taxes, reducing your cash dividends, and you pay...