*LIC Tax Concession
Under Australian Tax laws individual Australian taxpayers may be exempt from paying tax on 50% of a realised capital gain.  While this exemption does not apply to companies who are liable for tax on all realised capital gains, the government has recognised that individuals who are shareholders in Listed Investment Companies should have the same entitlements to the concession.  Hence the Income Tax Assessment Act has been amended to provide an equivalent concession for LIC investors.  Under this concession the portion of a dividend attributable to realised capital gains is entitled to a deduction of 50% of the amount.  This is in addition to any benefits from franking credits.

The Australian Taxation Office (ATO) through Income Tax Ruling TR 2005/23  provides a narrow interpretation of the circumstances in which the concession can be claimed. Premium, along with a number of other LICs, has contributed to a submission to the Australian Government Treasury that argues the scope of the concession should be broader than that set out by the ATO. The Board will not claim the concession until the matter has been clarified.