The coalition government does not support Labor's retiree tax, which will take money out of the pockets of one million Australians, including 230,000 pensioners. Labor's policy will overwhelmingly hit low- and middle-income earners, with 86 per cent of the individuals impacted on taxable incomes of less than $37,000. The coalition government notes the importance of the franking credit in the Australian taxation system. Franking credits represent taxes that have already been paid on behalf of shareholders.