The House of Representatives Standing Committee on Economics will hold a public hearing in Dee Why on Friday 30 November 2018 as part of its inquiry into the implications of removing refundable franking credits.
The Chair of the committee, Mr Tim Wilson MP, said ‘the committee is examining how removing refundable franking credits would affect investors, particularly senior Australians who have planned for their retirement under the existing rules.’
Mr Wilson said ‘during last week’s hearings in Sydney and Melbourne, many retirees shared their concerns that they stand to lose up to a third of their income and may be forced onto the Age Pension if the ability to claim a refund on their franking credits is removed.’
Wilson Asset Management, who will appear at Dee Why, said in its submission ‘the current system ensures that individuals who are subject to a tax rate below the 30 per cent company tax rate are compensated for the tax that has been paid at a higher rate.’
Wilson Asset Management argue that the proposal to remove refundable franking credits is ‘regressive’, since ‘high-income earners would still receive credits to offset their tax liabilities, with low-income earners paying the price.’
By contrast, the Australian Council for Social Services (ACOSS) submitted that ‘those most adversely affected by the removal of refundable imputation credits would for the most part be relatively wealthy people with substantial income from self-managed superannuation funds, who pay little or no income tax.’
ACOSS recommend that if such a policy is implemented, investors with low income from dividends could be protected by simply allowing ‘the refunding of imputation credits up to a modest annual limit.’
Mr Wilson said, ‘the final hour of the public hearing will provide the opportunity for members of the public to make short statements to the committee about how the removal of refundable franking credits would affect their retirement savings and whether it would increase reliance on the Age Pension’.
Public hearing details: 9.30am to 1.30pm, Friday, 30 November 2018, Dee Why RSL Club, Oaks Room 2, 932 Pittwater Road, Dee Why, New South Wales
Mr Tim Wilson MP
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