Investment bonds

What are Investment Bonds? Investment bonds are financial securities provided in a specific form by life insurance companies and friendly societies. Although the term “bond” is used, each bond is essentially a sub-trust under a master trust; and eligible for special taxation treatment as they are issued under - and governed by  - the Life Insurance Act of 1995. These bonds were traditionally referred to as Insurance Bonds. Whilst they [...]

By |2018-03-22T15:06:44+10:00March 10, 2010|Wealth Management|0 Comments

Discretionary Trusts

As the description infers, discretionary trusts are structures under which the controllers (in this case, trustees) exercise their discretion in undertaking various aspects of their responsibilities. The most interesting one for asset protection and for taxation purposes is the degree of discretion the trustee has over the distribution of income - and of assets. ...but, what is a Trust? A trust is a relationship between the trustee (who legally owns [...]

By |2020-01-29T16:24:22+10:00August 27, 2009|Wealth Management|4 Comments

Dividend Imputation and Franking Credits

What is dividend imputation? When shareholders receive dividends, they are essentially treated as having received a distribution of the pre-tax profits of the company. Accordingly, they must include in their assessable income the actual amount of the dividend received plus the amount of company tax paid on that dividend (referred to as the ‘grossed up dividend’, or dividend imputation). However, to ensure the dividend is not taxed twice, (initially in [...]

By |2017-07-31T15:43:15+10:00August 27, 2009|Investment Strategies, Wealth Management|8 Comments
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