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14/03/2018 News, TAX

Recently the opposition leader Bill Shorten announced the ALP's intention to change the way credits are allowed on Franking Credits stating it only helped the rich and big business. Either Mr Shorten is totally ignorant of how these laws actually work OR he is telling a Politicians "Truth".

The true impact of legal changes are going to be self-funded retirees on two fronts. Firstly this IS going to have an adverse effect on the Australian share market as our shares become less attractive. This is going affect every person in Australia with superannuation as most funds have a significant amount invested in Australian shares.

The franking credits which they have been receiving for most of our clients has resulted in a refund from the ATO as their taxable income has been below the tax free threshold. For our clients that has been income they need to survive on, they are not rich, they are not large companies. How many companies and uber rich have little to no taxable income? If they have may be it's time to look at the reason's why and fix them.

If the ALP is truly seeking to limit the benefit to large business and the uber rich, then place limitations based on their gross income and/or asset value. There are numerous examples of tax laws and regulations as well as social security that place these types of tests on taxpayers. I suspect they cannot do this as the majority of recipients of this benefit are run of the mill self-funded retirees. Not with millions tucked away but just enough to survive without being a drag on social security. Their reward from Bill Shorten is a swift kick in the nether region.

 

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