Removal of excess Franking Credits - A tax grab and nothing less
By Danny D'Astolto on February 12th, 2019
Several months ago we wrote a piece on Labor's plans to remove the refunding of excess franking credits of all taxpayers, including superfunds. We said back then that the policy was flawed and merely a tax grab.
The opposition has pitched this change on the basis that, somehow, people are getting tax refunded to them that they never actually paid.
We said then that it was an extremely misleading comment in that it's simply not true when you work through what actually happens.
The reality is that most people don’t know how it works, so they simply believe what is being sprouted.
The Age has published an article which, in a nutshell, confirms what we have been saying all along - it’s a tax grab.
You may well not have shares in your own name and hence it may seem this doesn’t apply to you.
However, we all generally have superannuation, of which the bulk is invested in shares, where these franking credits play a significant part in supporting and improving your super balance.