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”.

Related News:

“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”.




Related Content

Andrea Slattery to join AMP board

The founder and former managing director and chief executive of the SMSF Association, Andrea Slattery, is the latest appointment to the AMP board, whi...Read more

Returns not costing much in risk for top growth options

Many of the top performing superannuation funds’ growth options from the last three years have delivered on returns without compromising much on ris...Read more

Put members’ interests over politics: ISA

Ahead of the Federal Parliament sitting this week, Industry Super Australia (ISA) has called on the legislators to put superannuation fund members&rsq...Read more

Author

Comments

Add new comment