You don't have credit card details available. You will be redirected to update payment method page. Click OK to continue.
Your example (assuming 90 day at 2.15%) has return in cash at 2.15 + 4.00 = 6.15 at 70 %
And a franking credit of 6.15 at 30% to claim in tax refund.
My understanding is that in this scenario the SMSF receives the full 6.15% return on its investment.
Please confirm that my understanding is correct as this return is substantially better than cash rates or fixed term rates and would be a valuable addition to a diversified portfolio.
A: This is correct.
You will get the 4.305% in cash as a dividend (6.15% x 0.70); and the imputation credit of 1.845%.
In pension phase, you don’t pay any tax – so when you lodge your Annual Return, any imputation credits will be refunded to you in cash.
Clearly, if you take a long time to lodge your Annual Return, then you wait longer to get the imputation credit refund.
Effectively, your return is 6.15% (4.305% plus 1.845%)
