Labor strongly backed the Howard government’s introduction of the dividend imputation concession in 1999 and attempted to claim credit for it as ALP policy that benefited low-income investors, including retirees.
Then opposition Treasury spokesman Simon Crean said during a debate over the New Business Tax System (Miscellaneous) Bill that the move to refund excess imputation credits was part of Labor’s platform in the 1998 election.
“We have no difficulty supporting the proposal because it is our policy,” Mr Crean said.It builds on the major reform accomplished by Labor almost 15 years ago and it improves the current taxation situation faced by low income investors, especially retired Australians.
“Labor included this proposal in our taxation policy prior to the last election.”
Labor MP Michael Danby, who was first elected in 1998 and remains in his seat of Melbourne Ports, also voiced his support for the bill in 2000. “The proposed refunding of excess imputation credits contained in this bill is welcome,” he said.
“In particular, self-funded retirees on low incomes will benefit from this policy.”
https://www.theaustralian.com.au/nation/alp-quick-to-claim-credit-for-dividend-imputation-concession/news-story/527b6c17e531dc05120c3cae5e1fa40e
So after supporting the changes and encouraging investors to invest in Australian companies. Labor have now decided to change the rules.
A few points from the Parliamentary Budget Office
What we do know from the Parliamentry Budget Office (PBO) data is that in 2014-15, more than half of the 1,132,380 individuals receiving refunds had taxable incomes below the $18,201 tax-free threshold.
Around 70% of taxpayers over the age of 75 receive franking credits, with an average value of $6,347. These individuals take great pride in being self-funding in retirement. The PBO anticipates responses by those individuals to the policy may include shifting from Australian equities into other forms of investment.
As the PBO has said, there are many uncertainties around the baseline data and the behavioural responses. It is not clear that the policy will achieve the intended outcome of reducing the costs of dividend imputation and generating higher government revenues.
https://cuffelinks.com.au/labor-franking-credits-behaviour/
Remember the Labor party under Shorten complaining about Abbott's unfair budget. It seems they now consider it fair to change the rules that they supported for nearly twenty years. Sadly the Labor party and their supporters do not care about workers and the elderly who earning less than $18,201 who will be adversely affected by these changes. Add to that the fact they they will exempt some members of society from these changes but not others. Is that not discrimination? If I am currently on the pension or retired I am exempt, If I retire later I have spent 17 years saving under the system labor supported and claimed as their own policy idea only to be kicked in the guts and robbed by Bull$hit Bill and the Labor Party
