You don't have credit card details available. You will be redirected to update payment method page. Click OK to continue.
Am I correct in thinking our franking credits are safer, seeing they seem to have shelved the paid parental leave scheme? A more direct tax on money taken out of super seems inevitable or on profit, regardless of whether in pension mode or not. Or am I tilting at windmills?
A: Thanks for the question.
There has been no update about this. While further changes are expected to the paid parental leave scheme, the current plan would see larger companies pay a levy of 1.5% to fund this commencing 1 July 2015. At the same time, the company tax rate would be reduced to 28.5% - meaning that larger companies would continue to pay tax at an effective rate of 30%, but only be able to frank their dividends at a rate of 28.5%.
My guess is that we will get an update on the paid parental leave scheme in February – and alongside this, any flow on impacts it has for investors.
