How to avoid a hard landing if I lose my franking credits?

That has been bothering me for sometime then I thought that I needed reminded on why they are so valuable to all those in a low tax bracket.

It all depends on the marginal taxx rates that I am on.
 
 Australian income tax rates for 2018/2019 (residents)
Income thresholds
Rate
Tax payable on this income
$0 – $18,200
0%
Nil
$18,201 – $37,000
19%
19c for each $1 over $18,200
$37,001 – $90,000
32.5%
$3,572 plus 32.5% of amounts over $37,000
$90,001 – $180,000
37%
$20,797 plus 37% of amounts over $90,000
 
So if I earn less than 18,200 then I pay no taxx.

And if on 40,000 I would pay 4,547 taxx.

and if that 40,000 was from 25,000 income & 15,000 company profits from shares saved for over decades.

So I get 11,500 from the company & the 4,500 goes to the ATO @* [30%]company taxx.

So I find an extra 47 to pay.

But if that taxx credit was greater than 4,547 in this case then any excess taxx that I have over paid to under new proposed ideas stays with ATO.

So anyone with any owed excess franking credits will lose out and a couple needs 61,000 for a comfortable retirement.

Its going to be very modest from now on.

I read on the ASIC money smart site that  ‘A franked dividend consists of profits the company has already paid tax on.’

So a franked dividend is a prepayment of taxx & can be refunded at the moment.

So any excess is owed to me.

And then I read on MoneySmart how Australians need their taxx refunds with this chart
 
The average taxx refund is 2,574.

What Money Smart users say they did with their tax refund3
    • 29% - Paid bills
    • 21% - Saved it
    • 16% - Didn't get a refund
    • 13% - Loans or credit card payments
    • 9% - Home loan payments
    • 5% - Holiday
    • 5% - Other things (including engagement ring, education, car rego/tyres, party)
    • 2% - Household appliances
Sources
    1. Australian Taxation Office Annual Report 2016-17
    2. data.gov.au, Taxation Statistics 2015-16
    3. MoneySmart poll, August 2015 (n-2124)

However if those franking credits are removed then many of the 84% are up in the hot air.

I know that a debt repaid from the ATO of an average 2,547 would help my own dentist bills.

I need that average 2,547taxx refund so that I can land safely & happily.

 
So there are various serious alternatives I have at the moment to make up for the loss in income that I need are and are on my approved list APL.
 
These will be Double what your term deposit in the bank or in the cash account of your SMSF.

Capital preservation & a higher income is my focus.

And they have NO franking credits & so won’t be affected by any franking changes.

 And one other consideration I have is, why stay in the super system when there is so much legal risk??

If you want to enjoy a comfortable landing then call me on 3848 1088 or email This email address is being protected from spambots. You need JavaScript enabled to view it. or www.johnmcauliffe.com.au today as there are only days are left.