Australian Investment Blog

It’s very easy to get caught up in a journalist’s headline; after all they have to sell newspapers. Yesterday, the Financial Review’s leading story was classic scaremongering, aimed right at the largest nerve of Australian share market investors. The Federal Government’s tax discussion paper released this week raised the idea of abandoning/restructuring dividend imputation as they attempt to balance the books as the mining boom fades into a distant memory. It would be unpleasantly ironic if just as investors pile into high yielding shares, due historically low interest rates, the Government were to change the rules.

• Personally, I cannot imagine for one moment that the Liberal government will actually implement this political suicide.