sometimes I wonder why I even bother to work?

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It is worth reading the many submissions to the Standing Committee on Economics on the Franking Credits issue, here:
https://www.aph.gov.au/Parliamentary_Business/Committees/House/Economics/FrankingCredits/Submissions
You will see that, in addition to those who have SMSFs, there is a whole category of people who are placed in a new poverty trap by this proposed Labor measure. These are the people who have a dollar or more too much in assets to get the age pension and have modest shareholdings on which they depend for dividends and franking credits. Most of these will lose up to one third of income, resulting in a reduction to less income than the age pension that they cannot get.
I think this is called unintended consequences and Shorten and Bowen don't want to know about it.
The only solution, if the policy is enacted, is to spend the excess assets like crazy and claim the pension. What a terrible policy.

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Will labor have any actual Growth policies? My God. .....

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How does Labor intend to overcome the provision of Section 51 (31) of the Constitution, which requires that what it is intending to do with some people's franking credits (ie hijack them) must be on 'just terms'. The plan is plainly discriminitory in that those on welfare and NGOs will be exempt. 'Just terms'? I don't think so.

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Andrew. If you rely on Franking credits for your income or part income, you are not self funded. Receiving a cash bonus for franking credits is no different from receiving a centrelink pension.

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Herman, it is the same as the refund you get when the employer has deducted too much tax via PAYE. In both cases, a refund is made of a holding tax when it turns out that no tax is due. If I was making the same income from property rent or from bank interest, would you be recommending the government should seize 30% of it, even if my total income is below the tax threshold? Guess not.

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Rod.
I've worked & saved all my life becoming a SFR leaving the pension for diggers, handicaped, single mums etc BUT as Andrew stated I've NO option other than buy a new car have a holiday & put my snout in the trough & give in to socialism. Makes you cry.

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I am a SFR but do not believe that I am entitled to a refund from the franking credit, after all I receive a dividend from my share portfolio and if the franking credits were that important I would look at changing my investments

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John Casburn March 20, 2019 at 6:18pm

My sentiments exactly, Angus. If these shareholders are making so much money from the franking credits of the company tax that it would seriously affect their income if they didn't get it, then they must have a large amount of shares and receive significant dividends.

A company is a separate taxable entity and can claim expenses from business operations offset against any tax it is liable to pay. To be fair if a part owner receives a franking credit from tax legitimately paid by the company to meet its tax liability (as we all have to unless exempt) it should be considered as income (paid by other taxpayers) in the hands of that person and they should be liable to pay tax on that amount.

That is what happens where an owner of a company (which pays its taxes) and pays the owner a salary, the owner has to pay tax on that amount, and cannot receive a franking credit from the company. Any excess amount coming to the owner from the company would be taxable as income.

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