My super is in Aussie and International shares indexed, what happens with dividends and franking credits. Do that affect the unit price or do they go straight to my balance?
Super and Dividends
deme on 08/02/2021 - 17:08
Comments
My worked in Superannuation for 10 years.
My experience has been the 2 are separate.
One is capital gains (the increase in unit price) but these can be realised and unrealised.
The other is income generated from the holdings and they come through as an income item into your account after 15% tax. I believe Franking credits are done at the fund level not the individual account holder level.
Do that affect the unit price or do they go straight to my balance?
You don't own the shares, the FUND owns the shares. The fund gets them, which is reflected in the unit price.
YES they affect the unit price as they are used by the super to offset the profits and therefore have to pay less tax, just like you do if you own shares. Less tax == more money in your super balance.
Yes the returns reflect in your unit price.