No tax payable in SMSF (if you get it right)
- Thread starter Scott No Mates
- Start date
That's just stupid journalism. No bad accidents to report ??
The same rules apply to ALL super funds. Govt schemes, retail, industry funds etc SMSFs have the same legislation and same investment issues. However members may adopt a strategy that favours high yield shares that deliver franked divs while paying pensions....That's no scheme. Its just good strategy. Bear in mind then a pension recipient is exposed to market risk....May be a higher risk strategy than some will want. Someone 65 may not want to choose 100% exposure to shares. But they can choose to if they want to.
Simple maths - receive $10k of FF divs. Assesable amount = zero. Refunded tax credits $4285....This can increase yields by a massive factor.....ie 8% is common some 12%. You cant get that with cash rates. But you have to balance up the risk. The 45 days holding rule still applies so risk remains.
These issues are more apparent for a SMSF as they can be easily labelled as the root cause of all tax loss and its more likely SMSF members may adopt such a strategy. They have higher balances. They can CHOOSE investments.
Interesting that one day its ALL smsfs that are buying property. Now they are ALL buying FF shares.
Its looking increasingly like there is a push inside Govt to taper some of the overly generous tax concessions. eg : Maybe change rules so that franking credits aren't refundable if the income is exempt....Wow - What a way to grab a few billion from retirees.
The same rules apply to ALL super funds. Govt schemes, retail, industry funds etc SMSFs have the same legislation and same investment issues. However members may adopt a strategy that favours high yield shares that deliver franked divs while paying pensions....That's no scheme. Its just good strategy. Bear in mind then a pension recipient is exposed to market risk....May be a higher risk strategy than some will want. Someone 65 may not want to choose 100% exposure to shares. But they can choose to if they want to.
Simple maths - receive $10k of FF divs. Assesable amount = zero. Refunded tax credits $4285....This can increase yields by a massive factor.....ie 8% is common some 12%. You cant get that with cash rates. But you have to balance up the risk. The 45 days holding rule still applies so risk remains.
These issues are more apparent for a SMSF as they can be easily labelled as the root cause of all tax loss and its more likely SMSF members may adopt such a strategy. They have higher balances. They can CHOOSE investments.
Interesting that one day its ALL smsfs that are buying property. Now they are ALL buying FF shares.
Its looking increasingly like there is a push inside Govt to taper some of the overly generous tax concessions. eg : Maybe change rules so that franking credits aren't refundable if the income is exempt....Wow - What a way to grab a few billion from retirees.
Agree Paul. Shameful Fairfax Dross.
Any argument against the present dividend imputation system is advocating a return to the bad old days of double taxation?ie taxing the same company earnings twice, which is the hallmark of dumb policy. Even Keating understood that. The DIS really is one of the greatest features of our tax system.
These socialist pinheads just don?t get the idea that we need hardworking and enterprising people in this country to be able to do okay ? and to retain the after-tax fruits of their endevour, particularly in their senior years. But no, it seems the Robin Hood push is on to reach deep into those pockets to spread cheer to others.
Rather a slanted opinion to decree openly that 300,000 SMSFs are undermining the federal budget. Really ? But their talk about Dividend Imputation is merely a smokescreen for the real thrust of the article. The reporter and ?expert? Mr Baker go on to push their own solution for a great big brand new earnings tax on super funds in pension phase. What wonderful journalism. Who appointed these two as policy advisors for the nation?
The bitter headline and selective quotes in articles such as this have me hoping that Ms Rinehart soon gives this woeful media outlet the much needed de-tox it so richly deserves.
Any argument against the present dividend imputation system is advocating a return to the bad old days of double taxation?ie taxing the same company earnings twice, which is the hallmark of dumb policy. Even Keating understood that. The DIS really is one of the greatest features of our tax system.
These socialist pinheads just don?t get the idea that we need hardworking and enterprising people in this country to be able to do okay ? and to retain the after-tax fruits of their endevour, particularly in their senior years. But no, it seems the Robin Hood push is on to reach deep into those pockets to spread cheer to others.
Rather a slanted opinion to decree openly that 300,000 SMSFs are undermining the federal budget. Really ? But their talk about Dividend Imputation is merely a smokescreen for the real thrust of the article. The reporter and ?expert? Mr Baker go on to push their own solution for a great big brand new earnings tax on super funds in pension phase. What wonderful journalism. Who appointed these two as policy advisors for the nation?
The bitter headline and selective quotes in articles such as this have me hoping that Ms Rinehart soon gives this woeful media outlet the much needed de-tox it so richly deserves.
