If it ever hits $200, think how much you will have had to pay in Albo's unrealised capital gains tax.
The one thing the tax will do is to discourage investors from building a portfolio, using a dividend investment scheme & not taking a profit, which would have postponed having to pay capital gains tax.
In the case of CBA, a yield of well under 3% & you have to pay tax on the capital gain of that year. That does not sound like a good investment.
Assuming you get an annual dividend of $5.00 (currently $4.75) & the share price rises to $200, you would have to pay unrealised capital gains tax on over $28 @ 30% (based on today's price) which is over $8.40, thus a loss of $3.40 for the privilege of owning CBA in your super fund. Franking credits would minimise the loss by $2.14. Still an overall loss of $1.26.
How good does that CBA investment sound now? Rather pitiful I would suggest.
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