Ask Paul: I'll lose $50,000 in franking credits under Labor
Q. My wife and I have a self-managed super fund that stands to lose about $50,000 in franking credits should modified tax rules be imposed if a Labor government is voted in at the next election.
What alternatives do I have to maintain my income? - Thomas
A. Many of us are in the same boat, Thomas. Personally, I am going to wait to see the detail and timing if we do get a change of government at the next election.
Like you, I don't want to see any excess franking credits that are in my super fund go to waste.
A change in strategy has to wait until we know the exact details, but I suspect many people will look at their assets inside and outside super and plan accordingly.
While I hate shuffling my investments due to changing tax rules, it may be necessary in these circumstances.
If we do get a Labor government, Money will analyse the rule changes and provide potential solutions.