dave explain to me how this helps the poor and taxes the rich.
Scenario 1. A retired couple own their home and has 500 grand invested in div paying shares. Lets say an ave div of 5%. That's 25g a year. Not a real lot in this day of high rates, high energy, high insurance costs.....but franked up that 25 g is worth nearly 36 grand. With that once a year boost this couple can now get by if they watch their pennies. However now with Shorten's scheme they lose their tax credits and are trying to get by on 25g a year.
Scenario 2. Another retired couple have a house and 500g in div stocks like the last couple but they also own 5 rental properties. Unlike divs rent is not pretaxed and so must be considered. But this couple gets to use their div tax credits to offset any tax owing on the rent. They in essence get the full use of their franking credits and get a smaller tax bill and are rolling in cash. Couple A just gets shafted.
Now explain to me again who Bill Shorten will be looking after with this policy.
