By Jordan George 17December |2018 Head of Policy, SMSF Association:
“Thekey issue that will occupy the mind of most SMSF trustees is the imminent 2019Federal election, expected in May, and the possible change to a LaborGovernment. We already know that the Australian Labor Party has announcedsignificant policies impacting SMSFs.
The most substantialplanned policy change is Labor’s proposal to end the refund-ability of frankingcredits. SMSFs that receive franking credits for the tax paid by Australiancompanies will often receive a refund of the tax paid at the corporate level.
This has the biggest benefit for SMSFs in retirement phase, withfranking credit refunds playing an important role in providing retirementincome for many retirees.
The SMSF Association has estimated that theLabor policy would likely result in a 10% reduction in retirement income formost SMSF members in retirement phase.”
