Invest
ScoMo, Bowen, lock horns over dividend imputation modelling
The shadow treasurer and the Parliamentary Budget Office have hit back at suggestions from the Treasurer that modelling of Labor’s proposed dividend imputation reform is sub-par.
ScoMo, Bowen, lock horns over dividend imputation modelling
The shadow treasurer and the Parliamentary Budget Office have hit back at suggestions from the Treasurer that modelling of Labor’s proposed dividend imputation reform is sub-par.
Treasurer Scott Morrison released Treasury costings of the proposed policy this week, which found a $10 billion “black hole” in the policy’s expected revenue. The Treasury analysis also found Labor’s policy costing didn’t factor in investors’ behavioural shifts.
In releasing the Treasury’s costings of Labor's proposed dividend imputation reforms, Mr Morrison noted that Labor did not release the costings performed by the Parliamentary Budget Office, saying, “Labor’s costing request would have included what assumptions the PBO was asked to make and what caveats the PBO provided on its revenue estimates.
“Labor should similarly release the PBO’s work.”
However, Parliamentary Budget Officer Jenny Wilkinson said on Monday the PBO stands behind the costings, and added that the PBO was established to create a “more level playing field” by providing independent advice to all parliamentarians.
She said the PBO was also established to improve the public’s understanding and trust in policy costings, allowing debates to focus on the actual merits of policy proposals.
This is the second time in 10 months the PBO has defended itself against comments from Mr Morrison.
“The PBO brings our best professional judgement to the independent policy costing advice we provide. We have access to the same data and economic parameters as the Treasury and draw upon similar information in forming our judgements,” Ms Wilkinson said.
“We stand behind the PBO estimates that have been published by the ALP in relation to this policy, noting that all policy costings, no matter who they are prepared by, are subject to uncertainty.”
She added that the PBO takes behavioural changes, and current and future policy commitments into account when making costings. This includes company tax cuts and changes to superannuation law.
Further, Ms Wilkinson said the PBO in this instance “explicitly assumed” significant behavioural changes would occur among SMSF trustees as a result of the policy.
Shadow treasurer Chris Bowen argued that Mr Morrison’s claims were a deliberate attempt to “undermine the quality of costings” performed by the PBO, and amounted to a “next level politicisation of the Australian Treasury”.
“Labor is deeply concerned that the release of 'Treasury modelling' not only undermines the perception of Treasury as an apolitical economic agency, but the exercise itself seeks to deliberately undermine the quality of costings provided by the independent Parliamentary Budget Office, a costing agency of equal standing under the Charter of Budget Honesty.”
The Labor Party in March announced a proposal to remove the cash refunds payable on excess dividend imputation credits. The proposal would see individuals and super funds no longer able to claim cash refunds on excess imputation credits that had not been applied to offset tax liabilities.
Stock market
Could this bull market be losing steam?
There’s an old investment adage that bull markets never die of old age, with the current market showing signs of cracking just months after the recovery, an industry expert warns. ...Read more
Stock market
Super fund investors bid to acquire Sydney Airport
A group of super fund investors has lodged a non-binding takeover bid for Sydney Airport, valuing the company at over $22 billion. ...Read more
Stock market
10 most globally held stocks revealed
Australian investors remain bullish on electric vehicles and technology stocks, according to their long-term held positions, new research has shown. ...Read more
Stock market
How ‘gamer investors’ are pushing a new wave of social responsibility
A new generation of younger retail investors are pushing a new social movement, yielding a distributive impact on the markets, most notably through the GameStop saga, two researchers have revealed. ...Read more
Stock market
ASX tipped for record high despite inflation fears
The market is tipped to shake off fears of rising inflation, with the ASX 200 now tipped to close the year at a new record high, an economist has revealed. ...Read more
Stock market
‘Commission-free propaganda’: Warning issued for retail investors
The phrase “if you’re not paying for it, you’re the product” applies just as much to stock trading apps as it does to social media networks. ...Read more
Stock market
Is the tech sell-off creating opportunities for investors?
A tech sell-off sparked by inflation concerns has seen world markets crash. But is it creating an opportunity for investors to ‘buy the dip’? ...Read more
Stock market
Government opens arms to Wall Street
In its bid to maintain Australia’s global competitiveness, albeit its firmly shut borders, the Australian government has included a measure in its recent budget to allow foreign financial services p...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Stock market
Could this bull market be losing steam?
There’s an old investment adage that bull markets never die of old age, with the current market showing signs of cracking just months after the recovery, an industry expert warns. ...Read more
Stock market
Super fund investors bid to acquire Sydney Airport
A group of super fund investors has lodged a non-binding takeover bid for Sydney Airport, valuing the company at over $22 billion. ...Read more
Stock market
10 most globally held stocks revealed
Australian investors remain bullish on electric vehicles and technology stocks, according to their long-term held positions, new research has shown. ...Read more
Stock market
How ‘gamer investors’ are pushing a new wave of social responsibility
A new generation of younger retail investors are pushing a new social movement, yielding a distributive impact on the markets, most notably through the GameStop saga, two researchers have revealed. ...Read more
Stock market
ASX tipped for record high despite inflation fears
The market is tipped to shake off fears of rising inflation, with the ASX 200 now tipped to close the year at a new record high, an economist has revealed. ...Read more
Stock market
‘Commission-free propaganda’: Warning issued for retail investors
The phrase “if you’re not paying for it, you’re the product” applies just as much to stock trading apps as it does to social media networks. ...Read more
Stock market
Is the tech sell-off creating opportunities for investors?
A tech sell-off sparked by inflation concerns has seen world markets crash. But is it creating an opportunity for investors to ‘buy the dip’? ...Read more
Stock market
Government opens arms to Wall Street
In its bid to maintain Australia’s global competitiveness, albeit its firmly shut borders, the Australian government has included a measure in its recent budget to allow foreign financial services p...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
