franking credits

Self-funded retirees understand the capital risk in holding the ‘big four’. It’s one they’re prepared to take knowing their effective grossed-up yields are much higher than the nominal figure.

Stakeholders have welcomed a recommendation from the Senate Economics Legislative Committee that the government review its controversial plan to limit franking credits stemming from capital raisings and share buybacks.

Treasury has released for public consultation draft legislation aimed at closing a tax loophole for off-market share buybacks, prompting renewed fears over the future of franking credits despite assurances that mum-and-dad investors will not be affected.