The company profits do get taxed; but if the franking credits are refundable then the company effectively pays no tax on the dividends paid to retirees. See my above example. All of the tax paid by the company gets refunded.
When the changes were announced I originally thought that it was stupid and was never going to happen; but then the more you think about it the more you realise that it is a fairer system to make the franking credits non-refundable. The income is still tax free to retirees and there is no change to people who earn more than $37K. Franking credits were only made refundable in 2001 around the same time GST came in. To me it seems like they were made refundable at the same time at the expense of young Australians. As a 28 year old it actually p1sses me off.
Where to now for long term investors of Telstra, page-6699
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Last
$3.73 |
Change
0.080(2.19%) |
Mkt cap ! $43.09B | |||
| Open | High | Low | Value | Volume |
| $3.73 | $3.78 | $3.71 | $115.9M | 30.99M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 64775 | $3.73 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.74 | 590435 | 6 |
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| Last trade - 16.10pm 09/07/2024 (20 minute delay) ? |
| TLS (ASX) Chart |