The ALP’s policy to remove cash refunds on franking credits was according to Bill Shorten targeted at “the wealthiest 10% of SMSFsi”. As analysis of ATO data and the Treasuryii reveals, however, it is those on modest incomes who will be most affected. Of the $5.9 billion in franking credit cash refunds disbursed in 2014-15, $2.3 billion went to individuals, $2.6 billion went to SMSFS, $0.3 billion to other super funds and $0.7 billion to tax-exempt entities. In the weeks following the ALP’s announcement exemptions were extended to 230,000 individuals and 20,000 SMSFs receiving age pension benefits, and 4,600 tax-exempt entities,...

The Alliance for a Fairer Retirement System was formed to advocate for the principles of adequacy, sustainability, certainty and fairness in retirement policy. It exists to represent millions of senior Australians, shareholders, self-funded retirees planning a sustainable retirement and, as such, is keen to explore options to fix problems with the existing superannuation taxation, Age Pension means testing and broader retirement income systems. Organisations included in the Alliance are the Australian Shareholders’ Association; Australian Listed Investment Companies Association; National Seniors Australia; SMSF...

We are pleased to make a submission to the Committee on this matter. The recently proposed policy to prohibit the refund of franking credits has potentially adverse ramifications for many Australian taxpayers: It would be likely to hurt low-income earners and many low-income retirees; It actively discriminates against Self-Managed Super Fund members compared to members of large pooled super funds which breaches the principle of fair tax policy; It potentially hurts those borrowing to invest in their own business or public companies;...

We are pleased to respond to your request for comment on the revised exposure draft for the Design & Distribution Obligations Legislation. 1. Class of Client – In practice it is not possible to be specific for many common investment products While we recognise that there may be some investment products that cater to a very specific client type, the majority of investment products (Eg Australian Shares, International Shares,...

We are pleased to respond to your request for comment on the Design & Distribution Obligations Draft Legislation. 1. Practical difficulties for Issuers regarding Target Market Determinations for investment products for which there are a wide range of uses and investor types (a) Difficulties in defining a Target Market (by Class of Investor) While we recognise that there may be some investment products suitable for a narrowly defined target market, there are also many investment products that have a very wide target market. Using the example of an investment product which offers exposure to Australian shares...