tigerpie wrote:DOC wrote:Yes.
I'm confused as to why some on here think this is OK.
If you don't pay tax then you don't get a refund.
Its not that difficult to understand or maybe I'm being to simplistic?
The current system is that the company pays 30%, then when the dividend is paid to the individual, there is a 'square up' between the individuals tax rate, and the 30% already paid by the company.
The person in the 0% bracket gets a full refund.
Someone in the 19c bracket gets 11c back.
Someone in the 45c bracket pays the additional 15c.
Labor are proposing to change this system.
To the person in the 0% bracket, they are saying sorry, the company tax rate applies.
To everyone else, we'll still apply your individual rate. (This includes giving credits back to the person in the 19c bracket).
For me that is where it isn't fair.
Either dividends are individuals, and EVERYONE should pay their personal rate (which means giving credits back to those in BOTH the 0% and 19% brackets), or dividends are company profits, and the company tax bracket (of 30%) applies, meaning those in higher brackets then shouldn't be hit with the 'top up' payments.
I don't really care which rule applies, but to apply different rules to different groups is unfair in my opinion.