I’m not having this argument with you. In your
initial post the other week you stated that if
your earn $80K a year and you received a $70
dividend with an attached $30 franking credit
that you would receive a franking refund of
around $8, I’m not going back through the posts
to get the exact amount. I said no you don’t that
you would have to pay an extra $2.5 in tax plus
Medicare levy on that $100. The facts are simple,
if you earn $80 a year , your marginal rate of
tax is 32.5 % plus Medicare levy until you reach
the next tax bracket. I have already posted a
reply with the figures, I really don’t care what you
believe. I will spell it out for you again. Not taking
in to account Medicare levy or any tax rebates,
assuming you earn $80K a year you will pay
$16467 in tax. The next $100 you will pay $32.50
in tax. It doesn’t matter what how you
attribute it. You can say the first $80K is made up
$100 from my investments plus $79,900 from
my PAYG income, then the last $100 is the last
few hours of work it makes no difference. You
will pay $16467 on $80K and for every other
dollar ,up until $120,000 , you pay 32.5 cents in
the dollar. So again not allowing for Medicare
levy, tax rebates and assuming that you paid
exactly the right amount of PAYG through the
year, and you have no deductions. You earn $80k
a year and receive $70 dividend with an
attached $30 franking credit, your tax liability is
$16467 plus $32.50 = $ $16,499.50. Assuming
the exact amount of PAYG tax has been
deducted by your employer, you have paid
$16467 plus $30 = $16497, so you owe the tax
department an extra$2.50. You will NOT, I repeat
NOT get a franking refund as you have
previously stated. If it makes you feel better you
can say that $100 from your investments
was the first $ 100 you earned, and you actually
paid no tax on it because it’s in the $18,200 tax
free threshold, it makes no difference though,
you will still be paying $16499.50 in tax.
If you can’t see that I can’t help you. I’m not
wasting anymore time on this, you can go on
ignore with the idiot the other day who says there
is no such thing as franking refunds. Your
calculations are flawed and I have pointed out
why in my previous posts.
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