The company has paid the tax on its profits at 30% rate. It is as logical to return the excess of the tax credit to the shareholders as it is to allow the imp.credit as a tax credit in the first place. It is put into place because otherwise there is DOUBLE taxation going on.
Is it a loophole? No. It was a decision made some 16 years ago by the government of the day. That is not a definition of a loophole.
The government knew exactly what it was doing (at the time). It is now unsustainable because if you give a lolly to someone, and others learn about it, then lots of people will make their financial decisions on getting more lolly. That is logical. That is why economics is a bit predictable at least. Most people are as logical as their intelligence permits them regarding maximising their own financial security.
Shorten reckons he will put a cap of $3,000 accountanting fee permitted as a tax deduction in order that not too many engage the brain of an accountant to by-pass this change, or at least to minimise the damage it will cause to their finances. This is where BS cannot predict with any accuracy how much will be clawed back for the Budget. The Big End of Town will not be handing over the squillions, that is for sure. BS talks BS.
