Labor and tls, page-11

What Fug and his ilk need to understand is that many self funded retirees worked all their lives so that they could look after themselves in retirement and not be a burden on the system. They want to be independent. The overwhelming majority of them are not wealthy, and many would receive only marginally more than the government pension from their SMSF. These people will reorganise their affairs and take the government pension, thereby receiving other benefits such as reduced council rates, motor vehicle registration, cheaper prescriptions from the chemist, etc etc.

Also what needs to be understood is that self funded retirees MUST take a designated percentage of their fund balance every year as a pension, this percentage increases with age. It therefore stands to reason that if their fund earns less, ie loss of franking credits, the balance of their fund erodes quicker over time and they will eventually end up on the pension anyway.

I would also ask why this policy does not affect people on government pensions or industry funds. If you are on a government pension, you get the franking credit. Why target self funded retirees. Funny that. There is no way this policy will raise the amount of revenue labor thinks it will. However I believe it will have an impact on the share market in this country as people, particularly the really wealthy invest elsewhere.