POWERED BY MOMENTUM MEDIA
FSC backs franking credit inquiry recommendations
The Financial Services Council (FSC) has backed the central recommendation of the House of Representatives Standing Committee on Economics Inquiry report into the implications of removing franking credit refunds.
The report rejected the removal of refundable franking credits on the basis that it was inequitable, but the report did not address the impact of franking credit refunds on large superannuation funds.
FSC CEO Sally Loane said the removal of franking refunds would result in the unfair treatment of millions of Australians who invest their retirement savings in some large super funds.
“A survey conducted by the FSC, and detailed in the FSC’s submission to the Inquiry, showed the removal of refunds could on average cost $850 per year for retirees in affected large funds,” Loane said.
“A removal of rebates could result in numerous super investors facing significant financial loss, and an unfair result where many self-managed super funds and some large super funds lose access to refunds - while other large funds are unaffected.”
“Despite the FSC’s reservations about the report, we nevertheless still support the main recommendation of the majority report that franking refunds should continue.”
Recommended for you
The Federal Court has ordered AustralianSuper to pay $27 million for failures to address multiple member accounts.
The country’s fourth-largest fund is targeting the “missing middle” of members with a new digital advice service in partnership with Ignition Advice.
The prudential regulator confirmed it is considering BUSSQ’s Federal Court appeal.
The Albanese government has put forward a bold proposal to tackle the challenges of Australia’s swelling retirement pool, in an effort to allow superannuation funds to play a more active role in shaping members’ retirement outcomes.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.78 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
30.80 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
28.31 3 y p.a(%)
