The Wise Investor’s Alternative to Property

The Wise Investor’s Alternative to Property

While negative gearing in property investment grabs headlines for its tax benefits, savvy investors know there’s another potent strategy – investing in Australian shares with franking credits.

? Franking Credits, Simplified:
▸ Australian companies pay dividends from profits already taxed.
▸ They issue ‘franking credits’ to shareholders, which count towards your tax bill, avoiding double taxation.

? Why Investors Love Franking Credits:

Tax Reduction: Dividends with franking credits can lead to lower taxes compared to other incomes.

Higher Yields: Dividends often outperform rental yields from properties, more so after franking credits are accounted for.

No Extra Costs: Say goodbye to the ongoing expenses of property management.

If you haven’t already, explore how investing in Australian shares with franking credits can not only diversify your existing investment strategy but also maximise income returns and minimise tax.