- Switzer Report - https://switzerreport.com.au -

Good franking credits news

The best news I’ve heard in recent weeks (and I’ve unearthed a few good’uns I can assure you) was that the Centre Alliance Party should hold the balance of power in the next Senate and they’d oppose Bill Shorten’s unfair policy on tax refunds linked to franking credits for retirees not receiving a pension.

Before addressing your franking credits investment strategy, let me run through the good news vibes that all investors should be happy about. I’ll list these positive views for stocks below:

This is how Associated Press reported the conclusions from the meeting of the top 20 countries’ finance ministers: “Global finance leaders gathered from the spring meetings of the International Monetary Fund and the World Bank agree that the global economy has lost momentum this year. But they expect growth to pick up in the second half of 2019, as central bankers ease up on interest rates.”

On franking credits, the best play is to do nothing. The AFR’s Phil Coorey argues that the Centre Alliance Party (the old Nick Xenophon team) opposes Bill’s franking credits policy for self-funded retirees, though they could opt for a cap.

Franking credits and potential tax refunds have been a big influence on how we selected stocks for our portfolios when we were seeking income. But as someone who has a dividend growth fund, I know there are other stocks than the ones we all instantly go for, which collectively could help make up for any loss of franking credits, if Bill gets his way.

If the policy becomes law, that will be our key task to find the investments that deliver good income returns that currently are being ignored because of the attractiveness of stocks that bring franking credits to the table.

 

 

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.