House debates

Wednesday, 13 February 2019

Statements by Members

Dividend Imputation

1:38 pm

Photo of Ian GoodenoughIan Goodenough (Moore, Liberal Party) Share this | | Hansard source

Constituents in my electorate are worried. They usually look forward to receiving refunds from the Australian Taxation Office when the tax deducted from their wages exceeds their tax liability at the end of the tax year. In the same way, shareholders, including self-funded retirees, look forward to receiving refunds after they lodge their tax returns when the tax deducted from their dividends—at the corporate tax rate of 30 per cent—exceeds their personal tax liability because their overall income is low.

I received many emails, including one from John of Burns Beach, who said that Labor's plan to abolish refunds for franking credits would result in $1,000 to $2,000 less income per year for John and his wife. He states: 'With the costs of rates and utilities services rising regularly, it is getting difficult to manage. This would result in having to cut back on children and grandchildren's presents and generally cutting out extra items, such as dining out.' Self-funded retirees, who have worked hard to provide financial independence for themselves in retirement, should be treated fairly and should not be forced to pay for Labor's mistakes.