A Dividend Bonanza Is Set to Hit Investors in Australia
- Election favorite Labor is pledging to curb tax concessions
- Companies expected to boost payouts to avert rule change
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Australian investors are set to receive a boost in dividend payouts this month as companies rush to avoid a looming overhaul of tax rules if there’s a change of government.
The main opposition Labor party, which is favorite to win elections expected in May, is pledging to tighten so-called franking rules, under which shareholders reduce their overall tax liability. Several companies are expected to use up franking credits that would be rendered less valuable to some investors if the rules change, helping swell the total expected payouts this earnings season to about A$29 billion ($21 billion).