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‘Poor and biased’ tax proposal cops a lashing

Thumbs down, poor and biased

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 countrys 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.”

‘Poor and biased’ tax proposal cops a lashing
Thumbs down, poor and biased
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Anonymous - Why does this get all the media attention when in reality it affects very few and the charges are minimal? How about reporting on all the ISA TPD.......
Anonymous - This got to be the smartest comment this century ?!....
nan - So what do you do if you are being ripped of and then can't afford the body corporate fees....
MarkL - The banks may not charge dead people any more ........... but they won't charge them any less either!....