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Hey guys,

 

I  just had a question regarding franked dividends.

If for example:  I earn $100,000 per year and am taxed at 4th tax bracket

and then receive $100,000 in dividends, which is then taxed at 30% (franked)

so I receive $70,000net.

 

My income then becomes $100,000 gross + $70,000 net.

Am I then pushed into the higher tax catagory for my personal income of $100,000?

e.g. I am no longer in the 4th bracket, but go into the 5th bracket.

 

And also does the $70,000 net have to be taxed at a higher rate?

or are the two calculated seperately?

 

Hope someone can shed some light on this.

 

Cheers :)

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