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
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
