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Infrastructure Stocks Franking

Discussion in 'Beginner's Lounge' started by MrChow, Apr 12, 2017.

  1. MrChow

    MrChow

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    I was wondering why Infrastructure stocks like Toll Roads, Airports, Property, Electricity companies don't earn franking credits?
     
  2. DeepState

    DeepState Multi-Strategy, Quant and Fundamental

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    Because these stocks are generally trusts as opposed to companies. The earnings from the underlying assets are taxed in your hands rather than at the corporate level.
     
  3. Value Collector

    Value Collector Have courage, and be kind.

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    Also the underlying businesses are normally claiming so much depreciation and other tax concessions that they pay very little tax.
     
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