Labor to axe cash refunds for wealthy investors, page-203

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    So may people don't understand what Labor is proposing.
    To understand this, firstly refer to the personal income tax tables:

    Tax Rates 2017-2018
    1 Taxable income Tax on this income

     
    2 Rates
    3 $ Zero - $18,200, NIL TAX

    $18,201 – $37,000

    19c for each $1 over $18,200
    19%
    4 $37,001 – $87 000 $3,572 plus 32.5c for each $1 over $37,000 32.5%
    5 $87,001 – $180,000 $19,822 plus 37c for each $1 over $87,000 37%

    Just say you don't work, and you don't have any income from any other source, except ​
    you earned $18,000.00 per year in income from dividends of companies that you own (shares).  If they are "Franked at 30%" that means tax has been paid on them already at 30%. This actually means that your dividends of  $18,000, are taxed at 30% ($5,400.00 tax) and this tax is paid to the ATO by the company,  and you receive the remaining cheque for $12,600.00. ​


    Imagine if the company didn't pay that tax for you? then you would receive $18,000 instead. ​


    At the moment, the personal tax tables show that any income an Australian receives should be tax free up until $18,200, and because of this, i​
    n the above example, you can claim back the $5,400 tax already paid. ​


    Under Labor's new proposal, you can not. ​
 
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