"The article says though that you can use your tax credits from your divs to offset other income....it seems to me that the filthy rich will be the only ones with other income"
NL , 'other income' includes all taxable income you've earned,
It includes wages, capital gains, bank interest, dividends [franked, part franked and unfranked]
One doesn't need to be filthy rich to utilise their franking credits, in fact you will find the filthy rich will not be able to use their franking credits to offset any other income because those 30% franking credits won't even cover the income tax payable on the dividends to which they are attached because the 'filthy rich' are in higher than 30% tax brackets.
e.g. the $37001 -$87000 bracket.
The taxpayers who can fully utilise these franking credits are those whose taxable income falls in the first 19c tax bracket, [ the lowest bracket above Nil ] or those who are only just marginally into the second bracket, who successfully utilise them to bring their taxable income down to the lowest bracket.
{caption}Resident tax rates 2017–18{/caption}
1
Taxable income
2
Tax on this income
3
0 – $18,200
Nil
4
$18,201 – $37,000
19c for each $1 over $18,200
5
$37,001 – $87,000
$3,572 plus 32.5c for each $1 over $37,000
6
$87,001 – $180,000
$19,822 plus 37c for each $1 over $87,000
7
$180,001 and over
$54,232 plus 45c for each $1 over $180,000
The above rates do not include the Medicare levy of 2%.
The temporary budget repair levy ceased applying from 1 July 2017.
