Invest
Dividend credit changes present lesson in diversification
The dividend imputation debate could linger until the next federal election, a financial planner has said, arguing that the floated reforms are a lesson in diversification.
Dividend credit changes present lesson in diversification
The dividend imputation debate could linger until the next federal election, a financial planner has said, arguing that the floated reforms are a lesson in diversification.

According to senior financial planner at Omniwealth Andrew Zbik, the dividend imputation credits debate is unlikely to taper out soon.
As it stands, Bill Shorten and the Labor Party have proposed scrapping the cash refunds on excess dividend imputation credits.
This means individuals – exempting pensioners, as Labor announced on Tuesday – and superannuation funds would no longer be able to claim cash refunds on excess imputation credits that had not been applied to offset tax liabilities.
While interested and affected parties discuss the ramifications of this proposal, Mr Zbik argues the big-picture issue is that Australian investors are now overweight in shares, thanks to the current dividend imputation system.

Mr Zbik held up Credit Suisse research, which found that super funds currently own about half of the Australian stock market, as proof of the “handsome boost to income” the dividend imputation system grants.
Further, ATO research finds that SMSFs have about 46 per cent of their assets in Australian shares and trusts, compared to just 6.4 per cent in international shares.
With this in mind, he explained, “There is no doubt in my mind and experience that the dividend imputation credit system has skewed Australian investors to have an overweight allocation to Australia shares.
“Australian shares are defined as a ‘growth’ asset and are susceptible to greater volatility compared to property and fixed income assets.
“The chase for yield has been attracting many Australian investors for two decades. But the consequences of a lack of diversification have been demonstrated in the last year.”
He compared a series of global ETFs with a domestic ETF to illustrate his point.
Exchange traded fund | Explanation | 1-year return | 3-year return | 5-year return |
Vanguard Australian Large Companies ETF (add approx.~1% extra pa to factor in benefits of dividend imputation credits) | Invest in roughly top 300 companies in Australia |
2.37% ~3.37% |
1.89%pa ~2.89%pa |
5.68%pa ~6.68%pa |
iShares Asia 50 ETF | Invest in top 50 companies across Asia | 34.21% | 14.53%pa | 17.01%pa |
iShares S&P 500 ETF | Invest in top 500 companies in USA | 13.43% | 10.98%pa | 20.31%pa |
iShares Europe ETF | Invests in top 350 companies across Europe | 13.57% | 4.05%pa | 11.33%pa |
Reflecting on these numbers, Mr Zbik said, “Regardless of the outcome on the political debate about how to treat excess dividend imputation credits, investors should not allow tax policy to drive their asset allocation.”

Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more

Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more

Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more

Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more

Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more

Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more

Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more

Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more

Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more

Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more

Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more

Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more

Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more

Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more

Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more

Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more