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Articles
CBA Buy-back Tender
Income Tax - Car Expenses
Income Tax ? Car Expenses - 1
Income Tax ? Car Expenses - 2
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Income Tax ? Car Expenses - 4
Partnerships: Commissioner loses Part IVA Case
Pyramid Selling Schemes
Reasonable Allowance Limits 2003/04
What is Secure FTP Button
Employee Safety Net
Tax Deduction for Life Insurance?
Real Estate & Self Managed Superannuation Funds
FBT and Entertainment
FBT and Record Keeping
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FBT and Laptop/Portable Computers
CBA Buy-back Tender
Should I take up the offer?

You should ask yourself whether CBA are a share that you want to continue to hold.  Do you think that they will continue to increase in value and pay solid dividends?

If you decide to hold, there can be an advantage to accept the offer and buy replacements through your normal stockbroker.

The tax advantage occurs because your selling price will be $11.00 and the balance a fully franked dividend.  This generates a better tax answer for any Australian resident on a low or moderate tax rate ? particularly superannuation funds.

However, a taxpayer on 48.5% tax rate and a low purchase price (eg Float price of $5.40) may well be better off to sell on the market and only pay tax on the capital gain (at half rates with no fully franked dividend).

Each persons circumstances are different and their cost price varies significantly, so once you have studied the table on page 30 of the buy back booklet, the tax result may be evident.  If not, then call for advice.  The calculation will need your cost price and tax rate and we can then help ? but don?t expect an answer in two minutes!

  


19th-March-2004