The Labor party’s latest thought bubble, a $59 billion raid on imputation credits, is a direct attack on self-funded retirees, pensioners and low income earners that will mean dividends are no longer protected from double taxation.
As well as the more than one million individuals who will have their income squeezed, Labor’s proposal will also impact around 40 per cent of all self-managed super funds, and retirement savings held in approximately 3.5 million super fund accounts.
Despite their suggestion that recipients of imputation credit refunds are “typically wealthier retirees”, the fact is 97 per cent of individuals who receive refunds of franking credits have taxable incomes below $87,000.
Nationals Member for Cowper, Luke Hartsuyker, said that Labor’s thought bubble was nothing more than a blatant tax grab from pensioners and self-funded retirees that would have a big impact on the Mid North Coast.
“The Mid North Coast has a high number of retirees and low income earners, who would be severely impacted if Bill Shorten is allowed to impose his new tax,” Mr Hartsuyker said.
“It doesn’t matter if you’re self-funded retiree or on a pension, Bill Shorten and Labor want to take cash right out of your pocket.
“More than half of all individuals receiving refunded franking credits have taxable income less than the $18,200 tax-free threshold.
“This latest tax grab means Labor are planning on slugging ordinary Australians with more than $200 billion in higher taxes if Bill Shorten becomes Prime Minister. This is roughly equivalent to the entire GDP of New Zealand.”
Late last year, Bill Shorten said, “I think Australians pay enough tax at the moment. I don’t believe that another tax is going to be what Australians need or want at this stage”.
“This just proves you can’t trust Bill Shorten and Labor when it comes to tax increases,” Mr Hartsuyker said.