Govt attacks ALP’s imputation move
The Federal Government has claimed the Federal Opposition’s policy proposal on dividend imputation will impact around 40 per cent of all self-managed superannuation funds (SMSFs) and as many as 3.5 million superannuation fund accounts.
Reacting to the policy announcement, the minister for Revenue and Financial Services, Kelly O’Dwyer said the move represented a direct attack on retirees, pensioners and low-income earners ad would mean dividends were no longer protected from double taxation.
The minister claimed that despite the Opposition’s suggestions that recipients of imputation credit refunds are "typically wealthier retirees", the fact was that 97 per cent of individuals who received refunds of franking credits had taxable incomes below $87,000.
“What's more, over half of all individuals who receive refunds of franking credits have taxable income below $18,200, including pensioners, part-pensioners and self-funded retirees who have worked hard to support themselves during retirement,” O’Dwyer said. “Labor's policy would completely extinguish a vital income stream for these low income earners.”
“If Labor were serious about preventing the distribution of refundable imputation credits on the basis that entities haven't paid tax, why does their policy still allow hundreds of millions of dollars' worth of franking credits to be refunded to income tax exempt organisations like trade unions?” the minister asked.
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.
