Federal Member for Hasluck, Ken Wyatt MP, said today that he was thrilled that the House of Representatives Standing Committee on Economics will hold a public hearing in Guildford for its inquiry into the implications of removing refundable franking credits.
“Approximately 4,600 residents of Hasluck will be hit with this proposed tax.”
“Hundreds of thousands of Australians will have their retirement nest egg raided by Labor. Around 900,000 Australians stand to lose an average of $2,200 every year under Labor’s planned retiree tax.”
“It doesn’t end there, with many more Australians with self-managed super funds to lose an average of $12,000 every year. The hardest hit will be those on the lowest taxable incomes, with about 84 per cent of individuals impacted having a taxable income less than $37,000.”
“This is another shameless tax grab by Labor from those who have done the right thing, grown their nest egg and planned to provide for their own retirement.”
“This is part of Labor’s plan for more than $200 billion in additional taxes to people’s homes, incomes, businesses and savings,” Mr Wyatt said.
The Chair of the committee, Mr Tim Wilson MP, said ‘the committee continues to gather evidence about how the removal of refundable franking credits would affect investors, particularly senior Australians whose financial security could be compromised.’
The SMSF Association [self-managed super fund], who will appear at the Adelaide hearing, have called the ALP’s franking credits policy ‘flawed’ because it ‘proposes that refunds from dividend imputation are appropriate for almost all investors except for SMSF investors and those shareholders with low taxable incomes.’
Also appearing in Adelaide, National Seniors Australia said in its submission that many self-funded retirees ‘feel they are being penalised for doing the right thing by saving for their retirement and not being a burden on the taxpayer by relying on the age pension.’
Mr Wilson said ‘These hearings will provide an opportunity for Australians impacted by a change to refundable franking credits to address the committee directly with a three minute statement, and we welcome their contributions and participation’.