When an Australian shareholder receives their dividend from a shareholding and it is"franked", they receive a tax credit for the tax already paid by the company on that income — thereby ensuring that the same income is not"taxed twice".
At the moment it does not matter whether the super fund you are in — a large industry and retail superannuation fund, or your own personal SMSF — is a net taxpayer or not. Under Labor's policy, however, that distinction becomes a vital one. Industry and retail superannuation funds pool their members' money to invest. They usually also have members in pension mode who are not paying tax, but they also have members who are still working and are paying tax on both their contributions to the fund and their earnings.When a large super fund receives franking credits on its investments, under Labor's new policy it will be able to use them to reduce the tax that it would otherwise have to pay.
"It's a pooled system. The contributions that go into the super fund, they're able to invest that money as if there were large conglomerates, if you like, and have the benefit of being able to invest large amounts of money together."
Industry funds not affected so how is this “fair” billshortenmp ? Grandfather the change and stop changing the rules around super so people can plan for their retirement with certainty. Super was supposed to reduce the numbers on the pension not turn us into financial advisers
I thought that billshortenmp stated that if the win the election this will not impact those that are currenty recieving this bonus, I wish my Defence Force Retirement and Death Benefit Pension had the same benefit. I envy these lucky pensioners. I wish I had invested like that
500,000 in super at 71 and taking in 40k to 50k per year....so how long does this bloke think he is going to live that he feels he's entited to be topped up by taxpayers and not draw down on any of this capital? So we are paying for him to be able to leave his kids a 500k payout
You know both my parents worked hard all their lives, owned their own home and paid their way. They did not however ever have enough money left over to buy shares. Why should tax payers fund franking credits for those who have shares. They are fortunate to have shares.
My heart bleeds for these tax bludgers
I'd like to know how franking credits can make up 40% ($9000) of a $36000 income? Not possible?
The market responds. Who could have predicted that?
Greedy lot I'm sure they'll find a loophole Whingers
May
That’s right labor; get everyone to put their eggs in one basket so you can control them easier.
So sorry for you that Labor will stop people like me paying for your retirement. Sad face