Dividend imputation

Alternate Term Label:
Franking credits
NARROWER TERMS
Fact sheet

Fact Check: Will Labor's dividend imputation policy overwhelmingly affect the low paid?

The Morrison Government has argued Labor's controversial plan to scrap refundable franking credits on dividends from shares is unfair. Assistant Treasurer Stuart Robert says the plan will overwhelmingly hit low and middle-income earners, claiming that 84
Fact sheet

Fact Check: Why using taxable income to attack Labor's negative gearing, capital gains and dividend imputation policies is misleading

In the lead up to the 2019 federal election, RMIT ABC Fact Check examines how tax data is being used in the public policy debate.
Discussion paper

What dividend imputation means for retirement savers

A stochastic life-cycle model is used in this report to examine the implications for Australian retirees of full access to dividend imputation credits. We find that the availability of imputation credits can justify a significant bias towards Australian equities in retirement portfolios, largely at the...
Working paper

Australia's company tax: options for fiscally sustainable reform, updated post Trump

The Australian Government proposes to reduce the company tax rate from 30 to 25 per cent. However, there are widespread concerns that the fiscal cost is not affordable. This paper considers alternative reforms of corporate taxation that could fund a corporate tax rate cut. We...
Working paper

Australia's company tax: options for fiscally sustainable reform

This paper considers alternative reforms of corporate taxation that could fund a corporate tax rate cut, while addressing key non-neutralities in the corporate tax system in an international context.
Working paper

What future for the corporation tax?

This paper looks at the arguments for and against corporation tax in the context of Australia, which has had for thirty years a dividend imputation system for corporate-shareholder taxation.
Working paper

Dividend imputation or low company tax?

Recent OECD data offer limited support for the proposition that our company tax rate could be cut substantially with little or no loss of tax revenue. Treasury‐type analysis suggests otherwise: our headline rate could be cut to 20 per cent if abolishing dividend imputation were...
Working paper

Do franking credits matter? Exploring the financial implications of dividend imputation

We examine the implications of the imputation system for stock prices and returns, cost of capital, project evaluation, capital structure, payout policy and investor portfolios. We also discuss potential impacts if the imputation system was dismantled or adjusted, perhaps in conjunction with a reduction in...
Working paper

Dividend imputation: the international experience

An overlooked aspect of the debate surrounding Australia’s dividend imputation system is the international experience with dividend imputation. Between 1999 and 2008, nine countries removed their dividend imputation systems. A number of questions arise. What was the motivation for removing imputation? How were dividends taxed...
Discussion paper

Dividend imputation and the Australian financial system: What have been the consequences?

Dividend imputation was introduced in Australia in 1987. Despite many theoretical and empirical studies, there is little consensus on its effects on the cost of equity capital, share prices, or investment – due primarily to different views on the consequences of international integration on equity...