Refunding franking credits inquiry to hold public hearings

The Parliamentary Inquiry into the implications of removing refundable franking credits is set to hold public hearings next week.

The inquiry will be holding public hearings in Sydney on 20 November and in Melbourne on 22 November. “The program for this hearing has not yet been released,” says the programs posted by the Inquiry.

The inquiry by the House of Representatives Standing Committee on Economics was formed by the Coalition to inquire into Labor’s policy of stopping the refunding of franking credits for many taxpayers.

The Inquiry did have a closing date for submissions earlier in November, but this was removed and it appears that submissions will continue to be accepted. The Inquiry has so far published 240 submissions on its website, only four of which are from organisations.

The Inquiry has no set reporting date.

Not double taxation, zero taxation: Shadow Treasurer

Appearing on Your Money with Ticky Fullerton, Shadow Treasurer Chris Bowen said that Australia shouldn’t have a “distortionary” tax system with franking credits which encourages people to be overweight in their allocation to domestic equities.

Asked about the impact of the policy on people who have made retirement plans, Mr Bowen said: “I’ve had lots of discussions with people, I’ve had people come up to me and say I’m a beneficiary of this, I’ll do it for as long as it’s legal and I’ll thank you for fixing it because it’s not sustainable, I know it’s not sustainable, I know it’s not fair, there are better things to do with this Government money than provide me with a tax refund when I haven’t paid income tax.”

“This is not double taxation. I mean when you provide a refund to a shareholder for the tax paid by the company that’s not double taxation, that’s zero taxation,” he said.

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