By Chief Advocate Ian Henschke
If you haven’t caught up with the news, a parliamentary inquiry is underway into the impact of Labor’s proposed policy to remove franking credits from shareholders who have no taxable income.
National Seniors will be making a submission and we will look at the impact on both individual shareholders and those with a self-managed superannuation fund (SMSF).
You may remember we fought for and helped win what Labor calls the “Pensioner Guarantee”, which means pensioners will keep their franking credits and so will SMSFs who had a pensioner in the fund as at March this year.
If you have a SMSF, you need to be aware of how Labor’s proposed policy could affect you.
In last Friday’s Australian Financial Review, a page three article covered the debate between SMSF investors and Labor’s Chris Bowen on the franking credits issue.
What was not clear in the article is that Labor’s proposed policy discriminates between SMSFs not paying tax and those with their retirement savings in large APRA funds.
Because tax is calculated at the fund level, individual members in one of the large APRA tax-paying funds will keep their franking credits. Conversely, those who have worked hard and saved for their retirement using a SMSF will lose their franking credits.
You have a chance to influence the outcome of this debate by lodging a submission with the House of Representatives Economics Committee, which is undertaking the inquiry.
You can also tell us your story by emailing it to firstname.lastname@example.org.
I urge you to exercise your democratic right and have your say.
I also encourage you cut and paste this message and email it to anyone who may be impacted and encourage them to join National Seniors and our campaign.
National Seniors is a founding member of the Alliance for a Fairer Retirement System. You can find out more about our work with the Alliance at these websites:
You can also watch a video about our involvement with the Alliance at www.vimeo.com/292060526/e0bc0b42f2.