Ripper Wealth

Foundations

Before you invest, get your house in order. Set goals, track cash flow, and build emergency reserves.

What To Own

Understanding asset classes and their roles in a balanced portfolio.

Why It Works

Historical context, wealth cycles, and the economic principles that drive markets.

AI-Powered Education

Cycle-aware tools backed by institutional-grade research

How To Execute

Profile-specific strategies. Content varies based on your persona (PAYG, Business Owner, Property/Crypto/Stock Investor, etc.).

When To Adjust

Timing and signals. Know when to buy, sell, or hold based on market cycles.

More

Learn about us, get help, share feedback.

TAX ESSENTIALS FOR STOCKS/ETFS • STEP 2 OF 4

See It: Emma's ETF Journey

The individual investor should act consistently as an investor and not as a speculator.

— Benjamin Graham

Follow Emma's 10-year ETF journey and see how DRP, franking credits, and CGT timing impact her wealth.

Your Learning Journey

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This Step Takes: 20 minutes

Follow Emma's ETF investment journey and see the impact of DRP, CGT timing, and wash sale decisions.

What You'll Learn

See exactly how DRP compounding and CGT timing decisions can add or subtract $8k+ from your final wealth.

Story ProgressYear 2015
👨‍🔧

2015

Meet Dave, a plumber earning $80k/year as a sole trader. He's ready to grow his business.

Dave gets an offer for a big commercial contract worth $200k/year. How should he structure?

Key Insights

DRP Compounds Faster

Over 10 years, DRP added $8k+ to Emma's wealth vs taking cash dividends. The reinvested dividends buy more shares, which pay more dividends, which buy more shares...

Budget for DRP Tax

DRP dividends are taxable even though you receive no cash. Set aside money from your salary to cover the tax bill, or you'll be caught short at tax time.

Wash Sales Are Real

The ATO actively looks for wash sales. If you sell at a loss and rebuy immediately, they can (and do) deny the deduction. Wait 30+ days to be safe.

📊The Math on DRP

Emma's $30k VAS with 6% dividend yield (fully franked):

With DRP (10 years):$68,000 final value
Without DRP (10 years):$60,000 final value
DRP Advantage:+$8,000

That's the power of compounding dividends back into the market instead of leaving them in a savings account at 3% interest.

Tax-101 for Stocks - See It: Complete

  • DRP (Dividend Reinvestment Plans) compound faster than taking cash—but you still owe tax on dividends you never receive
  • Hold shares 12+ months for the 50% CGT discount—this can double your after-tax profit
  • Wash sales (sell, immediately rebuy) are watched by the ATO—wait 30+ days or switch to a different asset

Homework

Reflect

Do you have DRP enabled on your shares/ETFs? Are you budgeting for the tax on those reinvested dividends?

Action

Log into your broker today and check DRP settings. If enabled, calculate your expected dividend income and set aside cash for the tax bill.

What's Next?

20 minutes