Stupid Question, page-16

Thecobra thanks for your input.

I am a touch confused as to why you see the importance of the tax rate?
I don’t have the scales in front of me but from memory once you get much over 30g per annum most would be paying over 30% in income tax.
Found this

Tax rates 2001-02 and 2002-03
Taxable income Tax on this income
$0 - $6000 Nil
$6001 - $20 000 17c for each $1 over $6000
$20 001 - $50 000 $2380 plus 30c for each $1 over $20 000
$50 001 - $60 000 $11 380 plus 42c for each $1 over $50 000
Over $60 000 $15 580 plus 47c for each $1 over $60 000
The above rates do not include the Medicare levy of 1.5%.

Now people under 20g aren’t going to be to concerned about investing in the stock market.

Had another look at your calculations well clever, more that I required.

I am trying to do a comparison between a franked dividend and unfranked dividends to get real rate of return for someone paying tax at 30% or above.
Before you’re personal tax obligations.

Eg say a property trust paying 9% with no tax credits and say TLS as an example.
TLS at $4.75 yield is 4.63% 100% franked 30% tax paid, real rate of real return when compared to P/T is 6.62%
Providing you are earning over 20g per annum is this a fair comparison?

Thanks to all.

Gyro