DFC Matrix (Inv Acct)

MTR% Taxable / DFC Matrix (Inv Acct)

// Targets //

• TarFC <= 5K

• TarFC > Sav Int Tax

• Goal: Tax Free Cash Flow >= 45K

Notes:

• This is a prelim of how we plan on structuring our taxable account portfolio based on the Budget Tax Reform effective JUL28. Assuming the tax reform becomes effective, we have upto 2 years to set up our DFC portfolio. Target Cash Sav will be accumulated overtime.

• Target Portfolio: 300K and Target Cash Sav: 597K = Target 897K

• Currently, our Prelim includes CP. CP will be replaced by APP and include TAPP after JUL26.

• We’ll provide Template by JUL26 once we reflect APP and TAPP.

// Notes on ATO (AI Response) //

Outcome: If your assessable income is $45,000 and your total franking credits are under $5,000, then you will receive a full refund of any unused franking credits, provided you meet the integrity rules (and under $5K, you only need to meet the related‑payments rule). This is directly supported by the ATO: franking credits reduce your tax liability and any excess is refunded once tax and Medicare levy are accounted for .

✅ 1. Integrity rules outcome (under $5K credits)

The ATO states:

• If your total franking‑credit entitlement is less than $5,000, you only need to meet the related‑payments rule.

• You are exempt from the 45‑day holding‑period rule.

So at < $5K credits, compliance is simple: → As long as you did not pass on the dividend benefit to someone else, you qualify.

✅ 2. Tax calculation at $45,000 assessable income

At $45K taxable income (2025–26 rates):

• You do have some tax payable.

• But franking credits are a tax offset, not income tax.

• If your franking credits exceed your final tax liability, the ATO refunds the excess.

This is confirmed again by independent tax sources: If franking credits exceed your tax liability, the excess is refunded

// New Budget Plan Impact //

Short answer: No — the new 30% minimum capital‑gains tax does not apply to super funds (yet). Based on all available Budget 2026–27 sources, the 30% minimum CGT rate is targeted at individuals, trusts, and partnerships, and it is not clear whether it applies to superannuation funds. The government has not confirmed that super funds will be subject to the 30% minimum.

This is explicitly stated in multiple authoritative sources.

🧩 What the Budget actually says (with citations)

1. The 30% minimum CGT rate applies to individuals, trusts, partnerships

The Budget introduces a minimum 30% tax on capital gains for individuals, trusts, and partnerships from 1 July 2027.

2. Superannuation funds are not explicitly included

Ashurst’s Budget analysis states:

“The Budget proposes replacing the CGT discount for individuals, trusts, and complying superannuation entities with cost base indexation… paired with a 30% minimum tax on capital gains… It is not clear whether the 30% minimum tax is intended to apply to… complying superannuation entities.”

This is the most direct statement available: Super funds are not confirmed to be subject to the 30% minimum tax.

3. Clayton Utz confirms the 30% minimum applies to discretionary trusts

But does not mention super funds as being included.

4. BDO confirms the 30% minimum applies to trusts

Again, no confirmation for super funds.

🎯 Deterministic conclusion

Based on all authoritative sources:

✔️ The 30% minimum CGT rate definitely applies to:

• Individuals

• Trusts

• Partnerships

❓ The 30% minimum CGT rate is NOT confirmed to apply to:

• Superannuation funds (SMSFs or APRA funds)

✔️ What is confirmed for super funds

Super funds will move from the 50% CGT discount to inflation‑based indexation for assets sold after 1 July 2027.

✔️ What is not confirmed

Whether super funds will face the 30% minimum tax on real gains.