Please don't take the following questions the wrong way, I don't want to start another forum war, since there are so many.
I do want to encourage relevant, informed and thought out posts and hope to live up to that myself.
1. Please explain what is your point?
2. And how is it relevant to my post?
All you are saying is that different legal entities pay different tax rates?
Who knew!
My post was about the growth vs dividend yields how this relates to shareholder value.
It was posted because the thread presented a sentiment of wanting a big dividend payout and I'm making a case for why you really don't want that and rather want capital gain.
You can adjust the calculations for whatever effective tax rate you pay and the argument stands....
There could be certain tax or CGT concessions I'm not aware of in some limited cases.
Please share those, but AFAIK.
Super fund @ 15%
1. $70 grossed up dividend @ 15% tax = $59.5 in pocket
2. $70 capital gains without CGT discout = $59.5 in pocket
3. $70 capital gains WITH CGT discount = $64.75 in pocket
.... so CGT wins again super or not. Now with an effective rate circa 8%
Geared investor or not you are going to pay tax at your effective rate.
Explain how, for argument sake, geared investor that has $1M taxable income is going to pay less than 30% tax?
FYI. I sold out today. Who knows if that is the right decision or where this is going. Just saying what I did in the interest of disclosure. I'll keep an eye on it for another entry maybe.
Some you win, some you lose.
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