Invest
‘Poor and biased’ tax proposal cops a lashing
In the face of a government-backed inquiry, Labor’s plans to scrap refundable excess dividend imputation credits has copped further backlash from one of the country’s top investment analysts.
‘Poor and biased’ tax proposal cops a lashing
In the face of a government-backed inquiry, Labor’s plans to scrap refundable excess dividend imputation credits has copped further backlash from one of the country’s top investment analysts.
Don Hamson, who is the managing director of fund manager Plato Investment Management, referred to Labor's franking credits proposal as “a pretty divisive policy” that is “effectively increasing taxes on self-funded retirees”.
“My opinion is it's a pretty poor and biased proposal,” Mr Hamson said.
“If you’re in a self-managed super fund, you wouldn’t get any franking credits. Because that was all pension phase, you don’t get the exemption.
“There would be incentives in that situation for someone to get out of their self-managed super fund and own the assets in their own name or put it into a super fund where they can get the franking credits.”
Mr Hamson's comments come as the House of Representatives standing committee on economics announced an inquiry into the implications of removing refundable franking credits.
In March, Opposition Leader Bill Shorten proposed that individuals would no longer be able to claim cash refunds on franking credits that had not been applied to offset tax liabilities.
The abolition of the benefit, according to Mr Shorten, would result in an additional $5.6 billion to the federal budget bottom line.
Even if Labor wins the next election, Mr Hamson said it would be difficult to get the crossbench support required in the Senate to implement its franking credit proposal.
“As we've seen with the company tax policy of the current government, they couldn't get that through the Senate because it didn’t get approval by all the small groups and the Greens,” he said.
“[Senator] Pauline Hanson is against this policy and the Greens are against this policy, so it's going to be tough I think to get through the Senate.”
RELATED ARTICLES
Stock market
ASX companies make strides amidst federal budget chatter
In a week dominated by discussions surrounding the recently released FY27 federal budget, the financial landscape witnessed significant activity, particularly among ASX-listed companiesRead more
Stock market
ASX small caps report mixed results amid market optimism
The latest flurry of quarterly activities reports from ASX-listed small cap companies has provided a snapshot of the diverse and dynamic landscape of Australia's financial market. As April came to a ...Read more
Stock market
Adisyn Limited and Brazilian Critical Minerals make significant strides in their respective sectors
In a landscape where Australia's Information Technology sector often plays second fiddle to global giants, Adisyn Limited (ASX: AI1) is making waves with its innovative advancements in graphene ...Read more
Stock market
Australia's ASX 200 Energy Index surges amid Iran conflict
Australia's ASX 200 Energy Index has surged nearly 20% since the onset of the Iran conflict, marking its highest level in three months. This development positions Australia as the only developed ...Read more
Stock market
Webull launches Webull Connect, revolutionising access for Australian financial advisers
In a significant move that marks its entry into the Australian wealth management sector, Webull Securities (Australia) Pty Ltd, a subsidiary of the Nasdaq-listed Webull Corporation, has unveiled its ...Read more
Stock market
Future Generation Global boosts dividends with special payout, marking significant yield increase
Future Generation Global (ASX: FGG) has announced a significant boost to its dividend offerings for the year 2025, delighting shareholders with an increased fully franked full-year dividend and an ...Read more
Stock market
6K Additive secures A$48 million through initial public offering on the Australian Stock Exchange
6K Additive, a prominent player in the advanced metal powders and alloy additions market, has made a significant stride by successfully completing its Initial Public Offering (IPO) on the Australian ...Read more
Stock market
Institutional investors increase stock allocations to 18-year high amid cautious market shifts
In a recent development, State Street Markets unveiled the findings of its latest State Street Institutional Investor Indicators, revealing intriguing shifts in institutional investor behaviourRead more
Stock market
ASX companies make strides amidst federal budget chatter
In a week dominated by discussions surrounding the recently released FY27 federal budget, the financial landscape witnessed significant activity, particularly among ASX-listed companiesRead more
Stock market
ASX small caps report mixed results amid market optimism
The latest flurry of quarterly activities reports from ASX-listed small cap companies has provided a snapshot of the diverse and dynamic landscape of Australia's financial market. As April came to a ...Read more
Stock market
Adisyn Limited and Brazilian Critical Minerals make significant strides in their respective sectors
In a landscape where Australia's Information Technology sector often plays second fiddle to global giants, Adisyn Limited (ASX: AI1) is making waves with its innovative advancements in graphene ...Read more
Stock market
Australia's ASX 200 Energy Index surges amid Iran conflict
Australia's ASX 200 Energy Index has surged nearly 20% since the onset of the Iran conflict, marking its highest level in three months. This development positions Australia as the only developed ...Read more
Stock market
Webull launches Webull Connect, revolutionising access for Australian financial advisers
In a significant move that marks its entry into the Australian wealth management sector, Webull Securities (Australia) Pty Ltd, a subsidiary of the Nasdaq-listed Webull Corporation, has unveiled its ...Read more
Stock market
Future Generation Global boosts dividends with special payout, marking significant yield increase
Future Generation Global (ASX: FGG) has announced a significant boost to its dividend offerings for the year 2025, delighting shareholders with an increased fully franked full-year dividend and an ...Read more
Stock market
6K Additive secures A$48 million through initial public offering on the Australian Stock Exchange
6K Additive, a prominent player in the advanced metal powders and alloy additions market, has made a significant stride by successfully completing its Initial Public Offering (IPO) on the Australian ...Read more
Stock market
Institutional investors increase stock allocations to 18-year high amid cautious market shifts
In a recent development, State Street Markets unveiled the findings of its latest State Street Institutional Investor Indicators, revealing intriguing shifts in institutional investor behaviourRead more
