Buying listed shares in a company?

I know, I know… This is a stupid idea as you lose the CGT discount…

But remember that the discount could be 25%, not 50%, if there is a change in Government in May. And the highest marginal tax rate goes to 49% if there is a change in Government. And some companies will have a tax rate of as little as 25% in a few years time…

So, if all this happens will it ever be better to buy shares in a company than in your own name?

In the attached document I compare buying shares that have a fully franked 6% yield and 3% capital growth where you reinvest the dividends each years for 5 years, first in your own name and then a company… And the company wins… Including paying out the amount to the individual.

I never thought it would be so close.

Idea

About Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.
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