"Theoretically if you have enough bank shares you can completely offset any tax!!!"
Ah, not too sure about that one Fergl.
Deltoid is 100% correct about dividend imputation. If you marginal tax rate is 47% you are required to pay a further 17% in tax. Let me give you a quick example to help you out. Say you are in fact on the highest of MTR of 47% and the dividend you recieve from your beloved bank is $700. This $700 is grossed up to pre company tax dollars of $1000. On this $1000, your personal tax liability is equal to $470 (plus of course medicare, but I won't confuse you any further with that). $300 of this liability has already been paid by the company, and is what is called the imputation credit, therefore your liability is a further $170 come taxation time.
Hope this clears up a few things for you Fergl because I would hate to see you come to the end of the fin year thinking you had somehow managed to offset yours or your relo's entire income via imputation credits only to find you have a sizable bill from the ATO!!
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