When it comes to SMSFs or self-managed superannuation funds, what saves the day is franking credits. This comes in an era where the share market generates subdued returns. The ability to cut taxes is always appreciated by investors. These are valued even more in the environment of super low taxes. When you decide to DIY the super funding on a dividend with a franking credit of thirty per cent, this would be fifteen per cent ahead if the super fund in the phase of accumulation pays fifteen per cent to taxes. Funds in the phase of pensions paying no taxes on what you earn would then be ahead by thirty per cent. Getting a small accounting firm Melbourne to understand this more clearly may save you from any mistakes in your overall calculations. As a matter of fact, you might want to think about hiring a Melbourne accountant to guide you through the entire process.
It comes as a surprise to many people that folks with super funds they manage themselves such as retirees do not know that they get refunds from all the credits of franking attached to the income of the dividend. Frequently, this means thousands of dollars in terms of tax refunds each year for larger SMSFs. Do you think you qualify to receive larger tax refunds? Finding a Melbourne accountant to help you know what you are eligible for may be the best decision you have ever made. After all, you may feel as if you know everything there is to know about your own fund without realizing how many refunds you are actually eligible for.
The debate whether the tax white paper’s recommendations to get rid of dividend tax credits is something that the government should follow or something that they shouldn’t goes on.