Hi Chrome,

If by saying the TAB takeout rises by another 10% in your NEW example, you mean that the dividends paid out reduce by 10% (and these are NOT the same thing), then a 10% reduction in dividend payot for a punter experiencing a 20% LOT would have the effect of that punter experiencing a new LOT of 28%.

An illustration:
CURRENT OUT $100
CURRENT DIVS $80
CURRENT LOT 20%

becomes:
NEW OUT $100 (Same)
NEW DIVS $72 ($80 - 10% = $80 - $8)
NEW LOT 28%

That's the way I view it anyway.

Cheers again,
QFB