Personal Tax and Franking Credits

In by Rarm Paul1 Comment

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Rarm Paul

Hi Guys,
I’m a small investor on a low income and all of my stocks that pay dividends have franking credits at 100%.
But I’ve had a thought – because of my low income, if my personal tax rate is less than 30%, that company franking credits are equivalent to, does this mean that if I bought stock with dividends that paid at 0% franking credits, I would potentially get a larger dividend after tax because my personal rate of tax is less than the company rate of tax paid when franked?
Kind regards,
Rarm Paul

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    EquityMates

    Hey Paul - hopefully we've answered your question on the latest Ask Us Anything - https://equitymates.com/podcast/ask-us-anything-june/