Let's assume this retiree has $35,000 income per year.
around $20,000 comes from the Centrelink pension
$5,000, being the minimum withdrawal he/she needs to make from his/her personal superannuation account (assuming a $100,000 balance)
$10,000 (assuming he/she owns $200,000 worth of shares, fully franked)
Currently, this retiree would be entitled to $4,285 in tax refunds, resulting from the franking credits.
Under Labor plan this person would lose the $4,285 tax refund.
But if the person was richer and had more income say $45,000 from a couple of rental properties (instead of centrelink) they would be subject to tax on the $45,000 rental income because it exceeds the tax free threshold (anything above $18201 attracts 19% tax. ($45,000-$18201=$26,799 taxable income at 19% = $5091.81
So the poor person n the pension loses the $4,285 tax refund
Anyone with income above $45,000 can offset the franking credit against the tax payable on the higher income.
Labor is taxing the people on lower incomes with shares whilst allowing the better off to still benefit from the franking credit.
Now that's Labor values RIGHT!
