Franking Credits: why no government payment for bank interest?
John: Shares are riskier than Australian bank interest, right? Peter: Correct. John: It looks to me that the riskier investment gets the government support.
John: Shares are riskier than Australian bank interest, right? Peter: Correct. John: It looks to me that the riskier investment gets the government support.
John: So, where do franking credits come from?
Peter: The ATO, that’s where franking credits are born … think about franking credits like a gift voucher.
When the HBOS Group collapsed in 2008, UK taxpayers were left to fund a £17 billion bank bail-out. It was a prudential disaster that contributed to the break-up of the UK’s Financial Services Authority (FSA).
“Rah-rah-style motivational forums” and a $40 million chit for US consultant Marty Cohen helped to shape the aggressive cross-selling Commonwealth Bank sales culture which led, in part, to the customer disaster now unfolding at the banking Royal Commission. Michael Sainsbury reports.