Question: We are currently holding ANZ, CBA, NAB, WBC, TLS and MPL and we are planning to sell part of these to reduce our mortgage on our investment property. We do not want to miss out on the interim dividends on the above stocks and therefore would like to know the companies ex-dividend and record dates. Do we need to wait till the record date or can we sell them once they go ex-dividend?
Answer (By Paul Rickard): You can sell the stock as soon as it goes ex-dividend. You don’t need to wait for the record date. Most companies publish a calendar/diary of key dates, such as earning announcements, ex-dividend dates etc. on their website.
Question 2: My question relates to the taxation treatment of a lump sum from an SMSF for a person who is retired and is in the 55-59 age category. I understand that any lump sum is proportioned between your taxable and non-taxable percentage and that the first $180,000 of your taxable component is in fact tax-free. Is the lump sum still added to your taxable income for income tax purposes, and if so what are the implications?
Answer (By Tony Negline): Your tax-free component is tax-free. Your low-rate cap of $185,000 in 2014/15 is also tax-free. The remainder of the taxable component is taxed at 15% plus the Medicare Levy (which now also includes the NDIS levy).
The low-rate cap is reduced by previous benefits received.
All of the taxed element (including the low-rate cap) is included in your income for tax purposes. You then receive a tax offset to bring your tax rates on these benefits to what they should be.
The Explanatory Memorandum released when the amending legislation was introduced into Parliament says, “Super lump sums are considered to be in the top ‘slice’ of a person’s total assessable income. Therefore, super lump sums will not push other assessable income into a higher than normal tax bracket.”
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 regards to your circumstances.
