Franking credits boost spending in retirement by 5-6%: research

New academic research has found that the franking credits on dividends boosts consumption in retirement by 5%-6% – the equivalent of a 8%-9% higher balance at retirement. The paper What Dividend Imputation Means for Retirement Savers was written by three academics at the ANU. “Our results highlight that dividend imputation makes a significant difference to… Continue reading Franking credits boost spending in retirement by 5-6%: research

Parliamentary inquiry into removing refundable franking credits set up

A Parliamentary Committee will inquire into implications of removing refundable franking credits The House of Representatives has set up an inquiry into the implications of stopping refunding of franking credits – a Labor policy. The House of Representatives Standing Committee on Economics will inquire into the “implications of removing refundable franking credits”. In March Labor… Continue reading Parliamentary inquiry into removing refundable franking credits set up

Alliance launches anti-Labor imputation credit policy website

The Alliance for a Fairer Retirement System, which includes the SMSF Association and National Seniors Australia, has launched a website as part of its campaign against Labor’s imputation credit policy. Labor has a policy of stopping the refunding of imputation credits for most taxpayers, a policy which the Alliance says will be detrimental to retirees… Continue reading Alliance launches anti-Labor imputation credit policy website

Treasury finds $10 billion ‘black hole’ in Labor franking credit policy

The Government claims to have found a $10 billion ‘black hole’ in Labor’s policy to stop most refunds of franking credits. Labor says it’s policy will raise $55.7 billion over 10 years, based on Parliamentary Budget Office figures. But a Treasury costing finds it will raise $45.8 billion. “A detailed Treasury costing of Labor’s retiree… Continue reading Treasury finds $10 billion ‘black hole’ in Labor franking credit policy

Alliance formed to fight Labor’s franking credit changes

A group of superannuation, investment and retirement associations have formed an alliance to fight, in part, Labor’s proposed changes to refunding imputation credits. The Alliance for a Fairer Retirement System was formed in response to Labor’s policy of stopping refunding imputation credits for a range of shareholders, according to the Alliance. It will also explore… Continue reading Alliance formed to fight Labor’s franking credit changes

Labor franking credit policy to cost APRA fund members $3.75 billion

Labor’s policy to stop refunds of excess franking credits won’t just impact SMSFs, but also some APRA-regulated super funds – to the tune of $3.75 billion according to the Treasurer. Soon after Labor announced its policy to stop refunds of franking credits from 1 July 2019 it announced a change to the policy – the… Continue reading Labor franking credit policy to cost APRA fund members $3.75 billion

Labor exempts pensioners from plan to stop refunding franking credits

Labor has announced that all Age Pensioners, and some SMSFs, will be exempted from the recently released policy of stopping refunds of excess dividend franking credits, a meaningful change to the policy only two weeks after it was revealed. Labor had announced that, should they win the next Federal Election and pass the required legislation,… Continue reading Labor exempts pensioners from plan to stop refunding franking credits

Angry at Labor’s imputation credit refund policy? Blame Costello

Opinion: Many of the recent policy changes impacting superannuation and retirement planning – including the ALP plan to stop refunding imputation credits – have been a complicated and confusing attempt to wind back tax concessions, and a fair share of the blame for this can be apportioned to the actions of Peter Costello when he… Continue reading Angry at Labor’s imputation credit refund policy? Blame Costello

200,000 SMSFs to be hit by ALP policy to stop franking credit refunds

The ALP has announced a policy of stopping refunds of excess dividend franking credits, impacting some 200,000 SMSFs along with 1.2 million other taxpayers. Labor plans to reverse a change made by the Howard government making dividend franking credits fully refundable, from 1 July 2019 if they win the next election. Update: Labor exempts pensioners from… Continue reading 200,000 SMSFs to be hit by ALP policy to stop franking credit refunds