|
|
Re: Australian Dividend Franking[ Message Board ] [ Archives ] [ Search ] Posted by Mark on April 15, 2006 at 11:08:45: In Reply to: Re: Australian Dividend Franking posted by Don Atkinson on April 15, 2006 at 06:52:27: : Mark, : I would also greatly appreciate some support for Australian dividend franking. : I'm primarily interested in seeing the real performance of the share and so it is not critical for me to see the franking credit as a deposit to a cash account. : The benefit of the credit does depend on your marginal tax rate, which,in my case, is a tax rate of 0% as I run a Super Fund in Pension mode. Accordingly the fund will eventually (after the end of the current tax year) receive from the Tax Department the full 30% tax that has already been paid by the company. : A Super Fund in accumulation mode (not paying a pension) may be paying tax at 15% so would get 15% (30%-15%) back, whilst an individual may be on a top rate of tax (say 49%) and therefore be required to pay an additional 19% in tax. : In the vast majority of cases the marginal Tax Rate will be known for the full year so a possible solution may be for the user to be able to pre-set the marginal tax rate for the year, then only enter the franked and non-franked components and have FM calculate the amount refunded or taxed and use the result as part of the performance calculation. : I appreciate this presents a problem for FM as it is a variation to your policy of basing calculations on pre-tax figutes, and I also hasten to add that I am not an accountant! : Nevertheless support for this Australian "oddity" would be much appreciated and further enhance your already excellent program. : Don
Thanks for the post. As I'm sure you can understand I'm pretty leary of adding anything relating to tax rates... :) I can see a new distribution type for franked distributions, and the user can choose to enter the appropriate amount, taking into account their own tax rate if they wish. With this new type you would be able to report on it separately, and have the option to not automatically put it into the default cash account. It would be treated just like any other distribution type for purposes of return/performance calculations. Thanks,
|
| FundManagerSoftware.com | Search | Site Map | About Us | Privacy Policy |
| Copyright ©1993-2024 Beiley Software, Inc. All rights reserved. |