subscribe to our newsletter sign up

Over 2 million Aussies tipped to be captured by franking credits changes

Chris Bowen

More lobby groups are poking holes in the proposed, controversial changes to franking credits, and are now tipping about 2.6 million Australians will be negatively impacted by the changes. 

The Labor Party announced its plans last year to end cash refunds on excess dividend imputation credits. 

Ever since, the proposal has copped massive backlash, particularly from lobbyists across financial services. 

Now, the Financial Services Council (FSC) – which deals in the funds management space – has thrown its hat in the ring. 


The FSC was commenting on the House of Representatives’ standing committee on economics inquiry report into the implications of removing franking credit refunds, when it suggested that a portion of superannuation members haven’t been properly considered in assessing the franking credits proposal. 

“We note the report doesn’t address the impact of franking credit refunds on large superannuation funds,” the FSC said. 

“Figures highlighted in the FSC’s submission to the inquiry show that up to 2.6 million Australians that were in large super funds in 2015–16 received refunds and up to 3.5 million in 2014–15,” said chief executive Sally Loane. 

“It is therefore somewhat ironic that the report underestimates the number of people affected by changes at about 900,000,” she said. 

More market research 

A survey conducted by the FSC showed that the removal of refunds could, on average, cost $850 per year for retirees in affected large funds.

“A removal of rebates could result in numerous super investors facing significant financial loss, and an unfair result where many self-managed super funds and some large super funds lose access to refunds, while other large funds are unaffected,” she warned.

“Despite the FSC’s reservations about the report, we nevertheless still support the main recommendation of the majority report that franking refunds should continue.”



Over 2 million Aussies tipped to be captured by franking credits changes
Chris Bowen
nestegg logo
subscribe to our newsletter sign up
Recommended by Spike Native Network
Neil - I retired about a year ago and now I've got less income than I planned for. Can I sue my financial planner?....
Joe - Agree with Terry Dwyer. The really nasty part is the way it will hit self funded retirees (through their SMSF in many cases) who have direct shares.......
John - Not sure loss of 30% of income is something I just let go. Options I will be doing is investing overseas, local and international REITs and seeing if.......
Dr Terry Dwyer, Dwye... - I am amazed by these comments. The effects will be subtle but pervasive. It will have a huge effect on superannuitants in pension mode as with low.......