Bill Shorten is refusing to budge from his plan to abolish franking credit cash rebates for retiree investors, claiming the status quo is “millionaires’ welfare” bankrolled by ordinary Australian taxpayers.
But Australian Conservatives founder and South Australian Senator Cory Bernardi says Shorten’s proposed changes to superannuation tax laws is just plain stupid politics.
The Federal Government says 97% of people who get franking credit refunds have a taxable income below $87,000, and more than half of the beneficiaries have taxable incomes below the tax-free threshold of $18,200.
The change Labor is proposing would hit the incomes of a million Australians, most of whom are over 65, and affect one in three self-managed super funds, 370,000 member accounts and the retirement savings held in about 3.5 million super fund accounts.
Senator Cory Bernardi has told Sky News what Labor is proposing is economic madness.