In this video, we look into the world of tax-efficient investing in the Australian share market. We'll explore the benefits of franking credits and the 50% Capital Gains Tax (CGT) discount, comparing their impacts on investment returns.
Australian listed companies are known for higher dividends and franking credits, while others focus on capital growth, benefiting from the CGT discount. But which strategy is better for tax efficiency? Join us as we analyze real-world investment scenarios to uncover the answer.
Key Points Covered:
- Understanding franking credits and their tax-saving benefits.
- Comparing investments in companies like AFI (dividend-focused) and VAS (growth-focused) for tax efficiency.
- Exploring the complexities of trust distributions versus dividends and their tax implications.
- Evaluating the tax efficiency of capital growth investments (IVV) versus dividend-paying ETFs (VAS) over a 10-year period.
- Highlighting tax strategies such as deferring capital gains, utilizing franking credits, and optimizing tax brackets for long-term tax efficiency.
Whether you're a seasoned investor or just starting, understanding tax-efficient investment strategies is crucial. Watch the video for practical insights and strategies to enhance your investment returns while minimizing tax liabilities.
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Chapters
0:00 Intro
0:45 What I'm not covering in this video
1:30 Are dividends or trust distributions more tax efficient in Australia?
1:43 AF1 income in 1 year
2:53 VAS income in 1 year
5:10 Example 1: AFI vs VAS 1 Year comparison of tax efficiency
8:15 Is Dividend investing or Capital Growth Investing more tax efficient?
9:00 IVV income and capital growth over 10 years
9:39 VAS income and capital growth over 10 years
10:08 Example 2: IVV vs VAS 10 year comparison of tax efficiency
12:05 Key takeaways for Tax efficiency for AFI, VAS, IVV
LINKS MENTIONED
💰How to Enter ETF Tax Statement in MyGov Tax Return with no Pre Fill | 2023 Australian Tax Return • How to Enter ETF Tax S...
💰 Capital Gains Tax (CGT) on Shares and ETFs for Beginners | Australia 2022 Tax Return • Capital Gains Tax (CGT...
💰How Capital Gains Tax is Calculated in Australia • How Capital Gains Tax ...
OTHER VIDEOS
✔️ Why my 2022 Australian TAX REFUND was higher than normal 💰💰😄 • Why my 2022 Australian...
✔️ Higher WORK FROM HOME deduction in your 2022 Australian Tax Return • Video
✔️ Tax File Number (TFN) Declaration Form | Explained | AUSTRALIA only • Tax File Number (TFN) ...
✔️ How to track expenses for TAXES automatically | less Excel data entry work for SMALL BUSINESS • How to Track Expenses ...
ATO LINKS
🔗 MyGov help login.my.gov.au/mygov/content...
🔗 Work from Home Expenses instructions and COVID-19: www.ato.gov.au/general/covid-...
🔗 Carry forward unused concessional contributions www.ato.gov.au/individuals/su...
🔗 Claiming deductions for personal super contributions www.ato.gov.au/individuals/su...
DISCLAIMER: it is important to note that the information in this video is for general information and entertainment purposes only and is not a replacement for professional advice. Money with Dan is not a financial advisor. You should consider seeking independent legal, financial, taxation or other advice to check how the information in this video relates to your unique circumstances.
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#TaxEfficientInvesting #FrankingCredits #CGTDiscount #AustralianShares #InvestmentStrategies
6 авг 2024
