Analysis: What are franking credits and why do they matter?
the way Australian listed companies can issue them, and the Coalition accuses the government of breaking a promise.
Superannuation funds also pay low levels of tax to the Australian Taxation Office on behalf of their members, making franking credits particularly valuable.That has led to companies “streaming” franking dividends in order to distribute the excess franking credits they have on their books to their shareholders. A popular way to do that is with a buyback of shares off-market.
The proposed change would end the practice of companies rewarding shareholders by way of off-market buybacks, where capital is returned to shareholders along with a dividend component with franking credits attached. Shareholders will receive their twice-yearly dividends that will continue to have franking credits attached. Dive says companies that sell part of their business will continue to pay fully franked special dividends.
Labor took a policy to the 2019 election that would have stopped the refunding of franking credits. That led to a backlash from self-funded retirees, who pay little or no tax, and who receive refunds on the franking credits from the ATO.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Senate probe clears Lidia Thorpe of contempt over undisclosed relationshipA parliamentary investigation into Senator Lidia Thorpe's undisclosed relationship with a former motorcycle gang leader Dean Martin has cleared her of contempt of parliament.
Read more »
Franking credit crackdown faces Senate inquiryThe government’s proposed $600 million curtailing of franking credits connected to capital raisings and share buybacks will face a Senate committee inquiry.
Read more »
Chuck Schumer attacks ‘shameful’ Fox News over use of January 6 footage – liveSenate majority leader accuses host Tucker Carlson of ‘manipulating’ images of Capitol attack provided by House speaker Kevin McCarthy
Read more »
Boy meets Congress: Ben Savage, star of 90s sitcom, to run for California seatActor is vying for Los Angeles district represented by Adam Schiff, who is competing for Dianne Feinstein’s US Senate post
Read more »
Treasury ordered to hand over findings of ASIC-Karen Chester inquiryThe Senate has ordered Treasury to hand over findings of an investigation into the behaviour of ASIC deputy chairwoman Karen Chester.
Read more »
Unis should teach ‘how’ to think, not ‘what’ to think: Melbourne uni urges ‘Yes’ vote to VoiceLiberal Senator Sarah Henderson says Australian universities should be teaching students “how” to think and not “what” to think – as the University of Melbourne executives declare their support for a ‘Yes’ vote in the Indigenous Voice referendum. “I have concerns because academic freedom and freedom of speech on university campuses is paramount,” Ms Henderson told Sky News Australia. “It’s critical for critical thinking, for the progression of ideas. “And university academics which seek to subvert free speech shouldn’t be on university campuses frankly.”
Read more »