Eureka Correspondence

More on franking credits, buying gold and potash plans.

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.
Don Piper

Could someone please give me some advice on the best way to buy physical gold and perhaps some options regarding storage?
Roger Houghton



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