This will cause some ructions here! Full story on the link below:
"Labor to axe cash refunds for wealthy investors, saving $11.4bn
Bill Shorten’s policy shuts down Howard-Costello change to dividend imputation scheme Katharine Murphy Political editor @murpharoo
Tue 13 Mar 2018 00.01 AEDTLast modified on Tue 13 Mar 2018 00.02 AEDT
Bill Shorten and the deputy Labor leader, Tanya Plibersek. Shorten says Australians will continue to be able to use imputation credits to reduce their tax liabilities, ‘but not to claim cash refunds’. Photograph: Tracey Nearmy/AAP Bill Shorten will promise to end cash refunds for excess imputation credits for individuals and superannuation funds in a sweeping crackdown saving $11.4bn over the forward estimates.
In a shift that will be met with fierce resistance from investors and Australia’s self-managed super funds, Labor will shut down an extension of the dividend imputation scheme created by John Howard and Peter Costello, and restore the system to the original design, implemented by Paul Keating in the late 1980s.
Keating introduced dividend imputation in 1987 to prevent the double taxation of dividends, once as company profits and once as personal income, and the Howard government then enhanced the scheme by allowing individuals and super funds to claim cash refunds for any excess imputation credits not used to offset their tax liabilities.”.........
