Analysis of Labor’s dividend imputation proposal

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On 13 March 2018, the Australian Labor Party (ALP) announced that if it wins the next election it will amend the imputation system to make excess imputation credits non-refundable from 1 July 2019.

This policy announcement, if implemented, could have a significant impact on retirement incomes by reducing cash refunds for excess imputation credits and impacting returns on superannuation savings.



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2 Responses to Analysis of Labor’s dividend imputation proposal

  1. Dudley February 28, 2019 at 12:10 PM #

    Not mentioned is the immediate total loss of value of franking credits accumulated in a private company owned by shareholder director(s) receiving [their] tax free threshold or less as dividends paid by their company, combined with on-going 27.5% or 30% loss of income.

    Graphs for senior shareholder as member of couple:

  2. Michael Saint February 28, 2019 at 11:31 AM #

    I read the article on the proposed cancellation of Franking Credits. I am seething. I stand to loose between 15% and 20% of income, my fund is not large but provides a comfortable living standard. I would be interested to know if Bill Shorten was asked to reduce his income by the same amount what his reaction would be?! I may be a bit off course but when Bill Shorten retires from politics he will receive a substantial income, I think of several $100,000, tax free and indexed. For us humble souls to receive that we would need some $3,000,000, we are only able to have half that.!!

    If it there was a grandfathering clause then at least there would be some justice.

    When Paul Keating introduced the scheme everyone paid, whether you you were rich or not so rich, this is attacking the middle and lower income earners which Labor is meant to protect!!

    I could go on …………..

    Michael Saint

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