Tim Wilson to pit WAM against ACOSS on dividend refunds

Chair of the House of Representatives Standing Committee on Economics, Tim Wilson, will this Friday publicly compare the positions of Wilson Asset Management (WAM) and the Australian Council for Social Services (ACOSS) on Labor’s proposed franking dividend refund reforms, as the Committee considers the impact of the changes on retirees.

WAM would tell the Committee in a public hearing in Dee Why on Friday that the proposal to remove refundable franking credits was “regressive”, as “high-income earners would still receive credits to offset their tax liabilities, with low-income earners paying the price”.

The asset manager argued in its submission to the Committee that the current system of dividend refunds ensured that individuals subjected to a tax rate below the company tax rate were compensated for tax that had been paid at a higher rate.

Related News:

In contrast, ACOSS planned to tell the Committee that relatively wealthy people would be most adversely affected by the proposed reforms. It would recommend that should the policy go ahead, investors with low income from dividends could be protected by allowing the refunding of imputation credits up to a modest annual limit.

The Committee last week heard that some retirees were worried they could lose up to a third of their income, forcing them onto the Aged Pension, if franking credit refunds were removed. Wilson called on members of the public to make “short statements” on whether the reforms would increase reliance on the Aged Pension this Friday.

Related Content

Fin services needs to walk the walk on climate risk

Banks, insurers and superannuation trustees need to do more than talk the talk where climate change is concerned, with the Australian Prudential Regul...Read more

Interim injunction against Forex Capital Trading extended

The Australian Securities and Investments Commission (ASIC) has been granted an extension of its interim orders against OTC derivatives issuer, Forex ...Read more

Former Financial Wisdom advisor banned by ASIC

Victorian financial advisor Anneliese Ada Willmott has been banned from providing financial services by the Australian Securities and Investments Comm...Read more



Add new comment