Crikey Worm

Mar 13, 2018

Crikey Worm: Labor targets wealthy investors

Good morning, early birds. Labor plans to end cash refunds for wealthy investors. Plus, the Prime Minister ramps up the government's tax cut rhetoric. It's the news you need to know, with Chris Woods.

Chris Woods — Freelance journalist

Chris Woods

Freelance journalist


Opposition Leader Bill Shorten will today pledge to end refunds for excess imputation credits for individuals and superannuation funds, in a crackdown forecasted to save $11.4 billion over the forward estimates.

According to The Guardian, a future Labor government would restore Paul Keating’s original dividend system, introduced in 1987 to prevent the taxation of dividends as both company profits and personal income, and end John Howard and Peter Costello‘s enhanced scheme that allows individuals and super funds to claim cash refunds for any excess imputation credits not used to offset tax liabilities.

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4 thoughts on “Crikey Worm: Labor targets wealthy investors

  1. Wallywonga

    Becoming concerned that what has been mostly good coherent policy development by Labour, is now being replaced by potshot politics.
    Maybe just a play to the hipsters of Batman, but doubt that cutting refunds of imputation credits will only impact the “wealthy”, and may have greater negative electoral implication for the party.
    Any move like this has to be part of a cohesive tax reform plan.
    Pity that Ken Henry is now corporate. Probably the only economist clever enough to guide true tax reform, but instead now resorting to pleas to the business community to play nice, as a way of solving our economic problems.

  2. York City

    Sounds like a “look over there” brain fart aimed at Batman. Or another Plibersek scheme to match her quietly raising the pension age to 67 during the GFC.

  3. pinkocommierat

    This measure will free up money to restore the pension cuts to partly self-funded retirees that Scott Morrison insisted were necessary, and that Di Natale helped pass so’s to showcase himself as a sensible moderate force that the government could negotiate with. Good.

  4. Wayne Cusick

    Maybe it is time that the franking dividends, or whatever they are called, are disposed of.

    I read a little while ago that if franking credits weren’t around we could have the corporate tax rate at 20%. So why don’t we do that?

    And maybe that would also encourage companies to invest more, rather than simply giving all their profits out in dividends.

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