Who really loses from Labor’s new franking policy?
Labor’s latest attack on franked dividends is not a tax on the wealthy: it is a tax on widows.
Let’s say the man dies suddenly, leaving all his assets to his wife. Her situation will change dramatically. The assets she has inherited take her over the Centrelink cut-off point. She will lose her pension, as well as the concession card that goes with it. The good news is that she will keep the franked dividends of $32,000 but the bad news is that under Labor’s proposal she will lose the franking credits of $13,700. Labor’s proposed measures have finally raised some money!
