TAX SYSTEM ON SHARES FAIR
I CANNOT believe Bill Shorten’s knowledge regarding taxation on share dividends is so lacking as to even consider how tax is calculated and why.
Firstly, as a share trader if I see a small company starting up I usually buy some shares as my way of helping business creation and if every trader followed this, I feel it would help Australia boom again from small business up.
For those who do not have a knowledge of shares, if a person invests in a term deposit with a bank, you submit your interest payment in your tax return and tax is calculated.
In the case of a share in the same bank, when a dividend is declared, generally twice a year, the bank takes out 30 per cent which is then sent to the tax department on your behalf.
When your tax is calculated, usually 18 months later with the government having had the use of your money, if your tax credits are above your tax requirements you get a refund .
It is no different to having your employer taking out too much and you getting a refund.
So, if Bill wants to keep my excess he should stop all tax refunds and have treasury keep those.
In conclusion I feel the tax system on shares is completely fair. JULIAN E H STANWIX Como