A franked dividend is paid with a tax credit attached and is designed to eliminate the issue of double taxation of dividends for investors.
The shareholder submits the dividend income plus the franking credit as income but will only be taxed on the dividend portion.
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Terms and concepts that we use regularly, explained in layperson’s terms, especially in the areas of economics, finance and tax.
Negative gearing is a form of financial leverage typically seen in the context of property investing.
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