In further proof of the cosy relationship between Labor and the Unions, it’s been revealed that Australia’s largest union-backed Industry Super Fund warned against any changes to franking credits for shares in a submission to the Coalition Government in 2015.
Now, despite overwhelming evidence of the devastating effect the policy will have, Australian Super is backing Labor’s policy to remove franking credits for nearly a million low income Australians.
The Australian reports:
“In its submission to the tax white paper on May 29, 2015, Australian Super said: “Australian Super submits that there are substantial benefits to Australia in the continued operation of the present dividend imputation system. Australian Super strongly supports the dividend imputation system and opposes modification or removal of the system.
“Australian Super is therefore concerned that modification or removal of the imputation system could lead to significant amounts of capital in the superannuation system being reallocated towards foreign investment on the basis that such reallocation could provide comparative benefits to the retirement outcomes of Australian superannuation fund members.”
Australian Super got it exactly right in 2015.
Their assessment then has been reflected in more than 1,000 recent submissions to the Parliamentary Enquiry which outline the huge impact the tax will have on retirement incomes – especially for individuals and self-managed super funds.
“This is clearly a case of double standards from Australian Super. If it was a bad idea just three and a half years ago, what has changed?” National Director of Advance Australia Gerard Benedet said.
“Mainstream Australians are sick and tired of this sort of partisan double standard – where ideology is all that matters and the unions will back Labor no matter how bad the policy and how many people suffer.”