Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

The income tax refund that Labor is complaining about now comes after about 20 years of bipartisan support for this important policy. And the whole reason they're complaining is because some Australians pay less personal income tax, or pay no personal income tax, based on their personal marginal tax rate circumstances.

Now, of course, they do pay tax on the income from their shares; they pay, effectively, 30 per cent through the tax paid by the company in which they are part owners. Labor is saying that if you earn more than $180,000 a year you should be able to deduct that 30 per cent off the 47 per cent top marginal rate, whereas if you are a pensioner or a self-funded retiree—say, on less than $18,200 a year—and you pay zero per cent tax, you should not be able to deduct that same amount of tax paid, effectively, on your behalf by the company of which you are a part owner on 30 per cent on their profits. (Time expired)