Save
Bowen strikes back, slams ScoMo’s ‘dodgy analysis’
Shadow treasurer Chris Bowen has slammed federal Treasurer Scott Morrison over yesterday’s “silly scare campaign” which claimed franking credit reform would leave retirees $3.75 billion worse off.
Bowen strikes back, slams ScoMo’s ‘dodgy analysis’
Shadow treasurer Chris Bowen has slammed federal Treasurer Scott Morrison over yesterday’s “silly scare campaign” which claimed franking credit reform would leave retirees $3.75 billion worse off.
Mr Morrison yesterday claimed Labor’s proposed reforms to the dividend imputation system would be a $3.75 billion sting to retirees.
The Treasurer said: “Australian Taxation Office data shows that most APRA-regulated funds (2,013 of 2,603 funds) received franking credit refunds in 2015-16 worth over $300 million.
“This means that Labor's policy would deny around 2.6 million member accounts around $300 million in retirement savings each and every year.”
By extension, those lost savings are unable to generate returns, meaning that over 10 years of APRA funds generating returns of 3.5 per cent, the cost in retirement savings would balloon out to $3.75 billion.
However, responding to Mr Morrison’s claims, and reporting by News Corp which noted that the statistics quoted were, as of yesterday, yet to be released by the ATO, Mr Bowen said the Treasurer was relying on “dodgy” in-house analysis.
“It’s particularly amusing to see he’s now commissioning his analysis and modelling ‘in-house’ – that is, not from Treasury, but from his own office,” he said.
“The fundamental issue is that Australia can no longer afford to give out cash refunds – it is projected to cost the budget up to $8 billion a year in the next 10 years,” he continued.
Tax saving
Investor tax shifts squeeze borrowing power: what boards, lenders and developers need to do next
Australia’s proposed changes to capital gains tax concessions and negative gearing are already flowing through lender calculators, shaving investor serviceability at the margins that matterRead more
Tax saving
Budget relief now, capital friction later: what SMEs should really plan for
The Federal Budget hands small businesses short‑term relief, but looming changes to investment and trust taxation could reshape capital flows, risk appetite and valuations across Australia’s SME ...Read more
Tax saving
Clarity as capital: why the ATO’s rental deduction guidance is now a business strategy issue
The Tax Institute’s push for plainer, more practical ATO guidance on rental property deductions is not a semantic debate; it’s a capital allocation problem. Ambiguous rules inflate compliance costs, ...Read more
Tax saving
$20,000 instant asset write-off extension welcomed, but calls for broader support grow
The Australian government's decision to extend the $20,000 instant asset write-off into the next financial year has been met with approval from business leaders. However, there are growing calls for ...Read more
Tax saving
The downsizer dividend: How targeted tax levers could unlock housing supply in Australia
A call by Raine & Horne to incentivise seniors to move to smaller homes has kicked off a wider policy conversation that reaches well beyond real estate. If designed well, a targeted package could ...Read more
Tax saving
Raine & Horne's bold move could unlock housing supply but what are the hidden risks
Raine & Horne’s call for targeted tax incentives to encourage empty nesters to ‘rightsize’ isn’t just another sector wish list; it’s a potential lever to free up family homes, ease rental ...Read more
Tax saving
From annual check-ups to always‑on: how modern portfolio reviews unlock after‑tax alpha
The era of once‑a‑year portfolio check‑ins is over. Continuous, tech‑enabled reviews now drive returns through tax efficiency, risk control and behavioural discipline—especially in a high‑rate ...Read more
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
