Ordinary Aussies, in a wide range of superannuation funds, will have their savings slashed by Labor’s franking credit tax – according to evidence provided by the Financial Services Council to a parliamentary inquiry examining Labor's proposal.
What started off as a hit on individuals and self-managed funds has now been revealed as a massive grab across the board affecting millions more hard-working Australians who are saving for their retirement.
The Financial Review Reports the extent of Labor’s tax grab:
“As many as 2.6 million people in large superannuation funds will be affected by Labor's franking credit changes, the Financial Services Council says.
If elected, Labor will make excess franking credits non-refundable, denying some retirees a cash refund at tax time.
While anger over the policy has been largely from those with self-managed super funds and some observers have claimed that non-SMSFs will not suffer, the FSC claims more people in large regular funds will be affected than any other group.
“In 2015-16, refunds were worth $235 million to large super funds, with 50 funds receiving refunds," the FSC says in a submission to a parliamentary inquiry examining Labor's proposal.
“The average refund was $4.7 million per fund. There were 2.6 million accounts in these funds, so up to 2.6 million Australians benefited from refunds in these funds."
The massive and wide-ranging nature of Labor’s tax grab is just beginning to be fully realised. It’s an unfair hit on just about everyone’s super. Join our campaign to keep Labor’s hands off your super.