I didn't really follow the changes in One-Tier Corporate Tax System (Applies to all companies) until today when one blogger mentioned it.
Dividend paid out of "after tax profit" will be exempt from tax in the hands of shareholders (exempt one-tier dividends).
Payment of dividends on or after 1 Jan 2008
Effective from 1 Jan 2008, all companies remaining on the imputation system will be moved to the one-tier corporate system.
All dividends paid on or after 1 Jan 2008 will be exempt one-tier dividends. Companies cannot pay franked dividend on or after 1 Jan 2008 even if there is any Section 44A balance remaining as at 31 Dec 2007.
With the new tax development, Dividends as passive income has becoming more attractive over rental as alternate source of passive income as it is tax exempted.
http://createwealth8888.blogspot.com/2009/04/passive-income-after-retirement.html <-- previous post
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