The threat of Labor denying franking credit refunds led some investors to sell hybrids, widening their margins, which created investment opportunities for those willing to look past the immediate announcement.
Tag Archives | Labor
Labor justified its franking credits policy based on the cost rising 10-fold since 2001 and heading towards unaffordable levels. But were the numbers right and would the savings ever have eventuated?
The results of three studies suggest that companies undertake less tax avoidance due to franking credit refundability. It gives an incentive to pay corporate tax and franked dividends to satisfy Australian shareholders.
The assumption that being a member of a large pooled fund will protect franking credit refunds, and the lack of concern about the impact of Labor’s capital gains tax change, both require greater scrutiny.
Much has been written about Labor’s franking policy, so we bring together a range of possible strategies. It’s likely that even if implemented, it will not be in its current guise, so anyone affected should wait before taking action.
Cuffelinks has received over a thousand comments on Labor’s franking credit proposal. Here is a selection in favour of the policy to balance the generally critical nature of most comments and articles on the policy.
In the final Leaders’ Debate, the Prime Minister asked why Labor wishes to deny a tax deduction for additional personal concessional contributions, reinstating the old 10% rule. What’s the logic of this complex rule?
Labor’s franking credit proposal will reduce the income of many retirees who do not believe they are wealthy. Here’s an exchange with a reader who just wants an answer to “Is it fair?”
Labor is proposing to cap at $3,000 the amount that can be claimed as a tax deduction for managing tax affairs. There are many circumstances where taxpayers need to spend more than this.
Rarely do we go into an election with such contrasting policies from the major parties, and no more so than in superannuation. The nation’s decision on 18 May will have a big impact on retirement savings.
If Labor legislates to withdraw franking credit refunds, retirees have an alternative for their pension superannuation to retain the refund. It shows the proposal does not have ‘horizontal equity’ between structures.
Labor’s proposed policies on negative gearing and capital gains may come at a time when residential property is already weak, and it’s unlikely to make buying a property easier for first-home buyers.
Almost 2,000 people completed the franking credits survey, with 84% opposing the Labor proposal. Surprisingly, over half intend taking some action to mitigate the consequences.
A reader provides a copy of a letter on franking credits received from Chris Bowen, and we want to give the Shadow Treasurer a chance to put his side of the story.
This week we have a short survey on your attitudes to Labor’s franking credits proposal. It should take less than two minutes to complete, unless you want to have a rant.
Investors whose income may be hit by Labor’s franking credits proposal can reallocate away from fully franked dividends to other investments to maintain their income, but it will involve different risks.