Retirees who rely on franking credits for their long-term retirement savings plan may be left out in the cold under Labor’s plan to cut cash refunds for excess franked dividends.
Bill Shorten is proposing to remove the rebate component of the imputation credits system which allows shareholders and self-managed super funds to cash in unused imputation credits.
The removal of the cash refund component could have a disastrous impact on retirees, who have made financial decisions around their retirement based on their ability to claim refunds on their franking credits.
“This is just another cruel tax on retirees,” says Chris Smith.
Bill Shorten is claiming the cuts will only impact the big end of town, however, Geoff Wilson from Wilson Asset Management tells Chris “that comment from Shorten is a lie, it is a blatant lie.”
Mr Wilson from Wilson Asset Management has been leading a campaign against the policy and tells Chris that “what the Labor opposition is talking about is ruining retirees and low-income earners lives”.
“A lot of retirees in Australia survive on refunds from the removal of that duplication of the double taxation.
“To move the goal posts on people who have worked all their lives… they can’t go back to work and they’re getting their livelihoods cut.”
Click PLAY below to hear the full interview
The Federal Economic Standing Committee has announced an inquiry into Labor’s retiree tax to examine the overall impact on investors and the economy.
If you would like to support the campaign to scrap Labor’s plans, go to the petition on Wilson Asset Management’s website by clicking HERE.