Shares taxed at 50% in Australia

[OzMan]

I have shares in Australia, dividends from which are taxed at 50%, this makes return on investment poor. I am thinking of cashing in shares and moving money to a country with an expat friendly tax system. Has anybody else found this a problem and what have you done about it?

[Fat is a type of crazy]

Not sure how you are getting to 50 per cent tax. The section on Dividends paid or credited to non-resident shareholders in the following may assist:

 Dividends and non-resident companies and shareholders | Australian Taxation Office (ato.gov.au)

[AlexRRR]

Sounds like someone dint supply there tax file number to there share holdings holder..

[4MyEgo]

On 8/8/2023 at 1:15 PM, OzMan said:

I have shares in Australia, dividends from which are taxed at 50%, this makes return on investment poor.

If your dividends are fully franked, the tax is paid before they pay you, I believe it's a flat 30% so it shouldn't affect you.

 

If you're shares are unfranked, you have to pay the tax on them, I believe the same rate would apply.

 

The above said there is no capital gains tax paid on shares if you are a non resident for tax purposes so it could work out well for you if you consider yourself a good investor, that said the market has been <deleted>e for the last year or so with everything going on, but you can still make a buck.

[georgegeorgia]

You pay 50% on Cap Gain if you sell before 12 months,is that what you mean ?

[4MyEgo]

On 9/22/2023 at 7:45 AM, georgegeorgia said:

You pay 50% on Cap Gain if you sell before 12 months,is that what you mean ?

He'd have to be a resident to pay that kind of capital gains tax, i.e. if he sold his shares before 12 months, as you stated, the investment must be held for 12 months to get the 50% capital gains tax discount, after 12 months he would pay capital gains tax at the rate he is being taxed on, e.g. if he was earning $50,000 and his capital gains was $30,000/2 = $15,000, they would just add that to his salary, say $65,000 as tax it at that rate..

 

On the other hand if he was a non resident for tax purposes, he would pay zero capital gains tax regardless of how long he held his shares, e.g. 1 week, 1 month, 10 months, there would be no capital gains tax payable.

[gearbox]

On 9/21/2023 at 7:07 PM, 4MyEgo said:

If your dividends are fully franked, the tax is paid before they pay you, I believe it's a flat 30% so it shouldn't affect you.

 

If you're shares are unfranked, you have to pay the tax on them, I believe the same rate would apply.

 

The above said there is no capital gains tax paid on shares if you are a non resident for tax purposes so it could work out well for you if you consider yourself a good investor, that said the market has been <deleted>e for the last year or so with everything going on, but you can still make a buck.

https://www.expattaxes.com.au/tax-free-capital-gains-on-australian-shares/

 

However nothing beats holding assets in super in pension stream where everything is tax free and the franking credits can be claimed back. For the time being anyway...

[KhunHeineken]

Yet another new thread where the non resident for taxation purposes issue is being discussed, yet it's denied by many on the pension thread, despite dividends and pensions both being deemed as income by the Australian government.  

 

If you don't want to be taxed as a non resident of Australia for taxation purposes, then don't have any assets in Australia for them to tax.  Simple concept, really.