Worklog 5/07/14

Case Studies
*Share buy back/ Franking Credit

What are Franking Credits? (Dividend Imputation)-=> Grossed up Dividend

* Basically enables a company to ‘reduce’ amount that shareholders tax payers have to pay through a ‘tax credit’ so its merely requires them to pay difference between corporate and marginal rates. (Dividend Distribution)
* Gross up dividend ( means including Franking Credit)
* Important to ‘gross up’ dividend when comparing returns
* This is because some tax is paid for you(Frank Dividend) no cash has been paid from cash or long term deposits
* 45 holding day rule (effectively 47 as doesn’t include purchase or sell date)
or 90 days if holding a preference share
* Managed Funds has investment holding in Aus Shares, You can potentially recieve Franking credits
* It depends on your marginal tax rate, and franking level of dividend whether you pay tax. If its fully franked, and your marginal tax rate is under 30% you may potentially receive some franking credits back as refund.
* Also have to be eligible for more then 30% ownership risk, and over $5000 worth of shares
* Introduced by the Paul Keating/Hawke Government
Straight from Wikipedia
* October 2006, the Committee for Economic Development of Australia released a report, Tax Cuts to Compete, concluding that dividend imputation had proved an inefficient means of reducing Australia’s cost of capital. The report, authored by prominent economist Dr Nicholas Gruen, argued that the elimination of imputation would allow the funding of a substantial corporate tax cut. This would attract foreign investment and thus increase economic growth, it said.

A franking credit is a nominal unit of tax paid by companies using dividend imputation.
(From Wikipedia)

Foreign Direct Investment

* Read through all the notes I have made so far in economics, had to do some more dot points…still have yet to make casestudy notes

General Mathematics
* Success One 2009 Book; Chapter 2
* Reattempted 10.02 Download NCM
– Still can’t do 10,13 bcd, or 14
* Did in total 6 hours 35 minutes


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