Dividend imputation policy confirmed as ‘calculated risk’
The Federal Opposition has taken a calculated risk with its proposed changes to dividend imputation according to former Federal Labor Minister and industry funds board member, Greg Combet.
Speaking on a panel at the Conference of Major Superannuation Funds (CMSF), Combet described the policy announcement made by the leader of the Opposition, Bill Shorten, as “brave but sound”.
“But it is a fair way out from the next Federal election and it sets up Labor to argue its case on the basis of providing personal tax cuts,” he said.
Industry Super Australia (ISA) director of public affairs, Greg Linden described the Labor policy approach as being the result of a “calculated political judgement”.
However, he acknowledged that while most large Australian Prudential Regulation Authority (APRA) funds would be largely unaffected, self-managed superannuation funds (SMSFs) would certainly be impacted.
Linden said the reason large APRA funds would be largely unaffected was because they tended to exhaust their tax credits.
Like Combet, he said the policy would deliver a future Labor Government an enormous amount of flexibility which could help fund tax cuts.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
