subscribe to our newsletter sign up
LIVE
Royal Commission superannuation hearings - Live Coverage:

Bowen strikes back, slams ScoMo’s ‘dodgy analysis’

Chris Bowen

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.

Bowen strikes back, slams ScoMo’s ‘dodgy analysis’
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Isla Nettlefold - Hi Dan, can you please tell me how FACTA might effect me, a 74 year old retired American widow living in Adelaide? I have some rental properties that.......
Adam Goldstien CFP - There are justifiable reasons why a 70 year-old member would choose or an adviser would advise - a client be invested in cash; imminent retirement,.......
John Schofield - The questions were hostile and ignorant. The RC is an exercise in propaganda, publicity seeking and persecution. If the lawyers assisting the RC.......
Anton Boreckyi MFP C... - For God's sake, what is this Barrister looking for? He certainly will not be receiving any accolades. if an investor has made the decision to their.......