Advocating for retail investors and the community | Retirement tax 2.0?
Our dividend imputation system is in jeopardy once again with a two-pronged policy attack by the current government that will weaken the franking system by limiting the ability of companies to distribute franked dividends to shareholders.
Update on the Australian Franking System
The Senate Economics Committee chaired by Labor Senator, Jess Walsh, completed their review of the proposed legislative changes to the Australian franking system and handed down their findings. They acknowledged Schedule 5: Franked distributions funded by capital raisings needs clarification, an important victory for us all including industry and taxation experts, lawyers and academics who agree that this legislation is flawed. Unfortunately they didn’t grasp that Schedule 4: Off-market share buy-backs also has significant unintended consequences and needs redrafting.
Thank you and congratulations to everyone who has been vocal throughout this franking campaign. We have made good progress to date and now we must make sure this hard work delivers for all Australians.
We encourage you to write to your Senate representative and continue to express your concerns about the unintended consequences of tinkering with the Australian franking system.
We will continue to keep you updated on this important matter.