Two studies dive into the numbers to argue that Labor’s franking policy will hit low income earners the hardest, because a franking credit is a constant 30% of the taxable income.
Author Archive | Jon Kalkman
Labor’s policy on franking credits denies some taxpayers the benefit of taxes paid on their behalf, but a franking credit is money withheld by the ATO until the shareholder’s tax return is completed, just like a PAYG taxpayer.
Peter Costello’s 2007 changes made payments from superannuation tax free after age 60 for those who are fully retired. Is he responsible for making super unaffordable which is now forcing policy changes?
Denying imputation credit tax refunds to the SMSF as taxpayer will reduce its income, causing pension funds to deplete faster, and its members to turn to the age pension quicker. This isn’t an outcome the Government desires.
Labor has been forced to exempt ‘pensioners’ from its franking credit refund policy, but the target remains the zero tax paid by large SMSFs in pension phase. That will sustain the class war.