Franking credits policy “un-Australian”
The single biggest problem with policy proposals to remove refundable franking credits is that it treats people differently depending on where they’ve got their retirement savings, according to SMSF Association chair and Queensland academic, Professor Deborah Ralston.
Giving evidence before the House of Representatives Economics Committee inquiry into the Federal Opposition’s policy approach to the removal of franking credits, Ralston was asked whether the policy was being driven by industry funds with a view to undermining self-managed superannuation funds.
While stating that she did not like to see industry funds typified as “union-backed funds”, Ralston said there was no doubt that the single biggest problem with the Labor policy was that “it treats people differently depending on where they've got their retirement savings, and that's inequitable”.
“It's so un-Australian to say that people on the same income will be treated very inequitably because of where they've put it, whether it's in an SMSF, it's self-funded, or it's in an institutional fund,” Ralston said.
“Australia doesn't have policies that treat different classes of people differently. Our tax system should be horizontal, have horizontal equity and treat everybody in a neutral fashion.”
Asked whether it was unfair, Ralston agreed it was “unfair”.
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
