Powered by MOMENTUM MEDIA
SMSF adviser logo
subscribe to our newsletter
string(0) ""

Contentious franking credits proposal set for review

set for review, franking credits
By Katarina Taurian
19 September 2018 — 1 minute read

The economics committee is set to conduct an inquiry into the implications of removing refundable franking credits, as per Labor’s divisive proposal.

The House of Representatives standing committee on economics has today announced an inquiry into the implications of removing refundable franking credits.

The policy was proposed by the federal opposition in March.

The inquiry may also look at expected behavioural change by investors, including increased dependence on the pension; and if there are carve outs applied, what this might mean for additional complexity to the system.

“The ability for investors, including individuals and superannuation funds, to claim their full credits is an established feature of our tax system and is core to the financial security of retirees,” said chair of the committee Tim Wilson. 

“There has been legitimate community concern about proposals to remove cash refunds for their full allocation of credits for individuals and superannuation funds, and that it amounts to a tax on the savings of retirees,” he said.

The SMSF sector has been particularly frustrated by this proposal. Technical experts believe it doesn’t achieve the policy objective of targeting wealthier taxpayers, and is therefore unnecessarily impacting trustees who have structured their portfolios in good faith.

Advertisement
Advertisement
>The House of Representatives standing committee on economics has today announced an inquiry into the implications of removing refundable franking credits.

The policy was proposed by the federal opposition in March.

The inquiry may also look at expected behavioural change by investors, including increased dependence on the pension; and if there are carve outs applied, what this might mean for additional complexity to the system.

“The ability for investors, including individuals and superannuation funds, to claim their full credits is an established feature of our tax system and is core to the financial security of retirees,” said chair of the committee Tim Wilson. 

“There has been legitimate community concern about proposals to remove cash refunds for their full allocation of credits for individuals and superannuation funds, and that it amounts to a tax on the savings of retirees,” he said.

The SMSF sector has been particularly frustrated by this proposal. Technical experts believe it doesn’t achieve the policy objective of targeting wealthier taxpayers, and is therefore unnecessarily impacting trustees who have structured their portfolios in good faith.

Contentious franking credits proposal set for review
magnifying document smsf
smsfadviser logo
You need to be a member to post comments. Register for free today

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.