HI Gerling - there are a few more benefits than just paying the...

HI Gerling - there are a few more benefits than just paying the same income gross, ie:

1. Cash timing issue (as per @Csnody post
2. The trust structure enables capital gains to be separated from income ... therefore holders get the benefit of reducing capital gains income by 50% vs what they'd pay via a company (a company doesn't enjoy the 50% discount for assets held >12 months)
3. Deferred income can be distributed - no tax is payable on this (however it does reduce the holding cost of your shares - so eventually you pay CGT on this income so time down the track when you sell the shares)

There would have been an even greater advantage had Labor got in and shelved franking credit rebates - but of course this is no longer going to happen (for at least 3+ years anyway).

So depending upon your tax position the changes will be greater or smaller ... but unless you're holding via a company, I think you'll be in front. As my holding is actually held in a company ... I'm now thinking I might transfer to my name or my family trust! So thanks for getting me to think about it!

Considering the above - I could see the change being worth an extra 5-15% depending upon the investor.

Cheers, Simon