Letters of the Week

The benefits of holding bank shares, and the curly issue of anti-detriment payments.

Bank shares
I would like to take a contrary view to Alan Kohler's with regard to bank share holdings. I cite the position of a person with $400,000 invested in a mix of, say, three of the four major banks and Telstra. If those shares provide the only taxable income for the individual, the dividends of $28,000 come with $12,000 of franking credits, allowing that person to receive a tax rebate of $6,450. In effect, the individual has received $34,450 in dividends for their $400,000 in shares, giving him or her a net yield of 8.6% or a gross yield of 12.3%. Furthermore, that rebate will be received annually by the individual and as dividends paid increase in the years ahead from those companies, the corresponding yields increase further. One may not be getting much in the way of growth in the companies’ prices in the years ahead, but there is plenty to be satisfied with in comparison to the 6% taxable obtained with a bank deposit.

– C Hall

Anti-detriment payments



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles