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Will I lose franking credits from my dividends?

John Wasiliev explains why you shouldn’t be alarmed by the changes to the franking credit rules and what they mean.

John Wasiliev

Q: If the federal government passes legislation to stop listed companies using franking credits as part of their dividends, will that have any effect on super fund returns, and if so, in what way? Colin

A: The legislation before parliament that you mention is a proposal by the Labor government to change the tax treatment of an investment strategy based on dividend imputation franking credits, known as off-market share buybacks.

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John Wasiliev is a veteran SMSF specialist and has provided answers to readers' questions on superannuation for decades. Have a super question you'd like answered? Email John at superquestions@afr.com

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    Original URL: https://www.afr.com/wealth/personal-finance/will-i-lose-franking-credits-from-my-dividends-20230419-p5d1pe