TAX SYS­TEM ON SHARES FAIR

Southern Gazette (Belmont) - - OPINION -

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

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