More on franking credits
I refer to Bruce Brammall's article The franking credit fallacy. Let's keep this simple!
1. A company makes a net profit of $100 and pays $30 tax.
2. That company then pays a fully franked dividend of $70.
3. The dividend is received by a super fund in retirement mode, therefore paying no tax.
4. The super fund receives a refund of $30 thus negating the original tax paid by the company.
None of that is the fault of the super system. In my view, the fault lies with the Treasurer who made the "no-tax-for-super-funds -in-retirement-mode" announcement. Simply a move the country can ill afford. Just ask Treasury.
Am enjoying my subscription, keep up the good work.
Could someone please give me some advice on the best way to buy physical gold and perhaps some options regarding storage?
Editor’s response: Thanks for your question. You might be interested in a previous Eureka Report webinar on this topic - Gold: Price forecasts, ways to buy it, and the stocks to look out for. Tim Treadgold’s recent article, Gold: Only half way to the bottom?, may also be of interest.
I read with much interest Robert Gottliebsen's Transforming BHP. Albeit, chief executive Andrew Mackenzie will be faced with a surprise when he completes the erection of a shaft and other facilities in Canada to extract potash, when prices rise. Potash West will by then flood the potash markets in Australia and Asia. The company has a major land holding over one of the world's largest known glauconite deposits, with exploration licences over an area of 2600 square kilometres in the Perth Basin.