Tag: Tax

Depending on factors such as your current year taxable income, your future expected taxable income, expected investment returns, current and future tax rates, your risk profile, your view of legislation risk, government tax offsets and schemes available there may be strategies you can take advantage of. 

It is imperative that investors focus on after tax investment returns and not pre tax investment returns.  We have put together a few scenarios to highlight the importance of tax when investing.

As shareholders are part owners of the companies in which they invest, tax paid by the company is considered to be tax paid by the shareholders themselves. This means that if the company has paid Australian tax on its profits at 30 percent (the company tax rate) before you receive your dividends, then effectively any dividends received from the company you have paid tax on them at 30 percent.