I'm looking at diversifying the money I have in a managed investment fund, currently all in "Australian Shares", and putting some in a higher risk bracket (Geared), and some into different sectors like property funds or global resources (good time with the high dollar).
Looking at the fund profiles, they break the annualised returns down into "Growth" and "Income/Dividend" brackets.
Are there any tax benefits in regards to having a fund which focuses on either growth or income, or are they both treated the same when it comes to taxation (assume money is untouched, dividends reinvested)?
My understanding is the dividends are taxed at the highest marginal bracket, whilst growth isn't taxed until you redeem units from the fund (at 50% of highest marginal rate)?
Looking at the fund profiles, they break the annualised returns down into "Growth" and "Income/Dividend" brackets.
Are there any tax benefits in regards to having a fund which focuses on either growth or income, or are they both treated the same when it comes to taxation (assume money is untouched, dividends reinvested)?
My understanding is the dividends are taxed at the highest marginal bracket, whilst growth isn't taxed until you redeem units from the fund (at 50% of highest marginal rate)?
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