The SMSF Association has backed the House of Representatives Standing Committee on Economics’ decision to inquire into the implications of removing refundable franking credits.
SMSF Association CEO, John Maroney, said it was their belief that the proposal would affect more than one million Australians either saving for or in retirement, and the organisation remained “resolutely opposed” to the Labor Party’s proposal.
Maroney said the inquiry offered an important opportunity for retirees and savers that would be negatively affected by the removal of franking credits to voice their concerns to the Committee.
He stressed it wouldn’t just be the wealthy that were affected by the proposal and pointed to an analysis of Australian Taxation Office and Treasury data that showed it was those on modest incomes who it would hit the hardest.
“The most likely consequence if this proposal sees the light of day will be to substantially damage the lifestyles of retirees who have prudently saved and are carefully drawing down on their retirement savings,” he said.
“It will also undermine confidence in the system, especially when considered in conjunction with the enormous changes introduced on 1 July 2017, having the deleterious effect of sending many retirees back to the drawing board to rethink their retirement income strategies.”
