Labor to end 'millionaire welfare' by axing tax loophole

Have a great night

This system, which is known as " dividend imputation", is unusual - only four other countries in the world use it.

"Australia now pays out $8 billion of taxpayer money in tax refunds to people who don't pay any income tax", Shorten said.

Mr Shorten said one in 10 of Australia's 2.5 million pensioners would be affected by the change.

Bill Shorten has doubled down on his plan to abolish franking credit cash rebates for retiree investors, branding the status quo "millionaires' welfare" bankrolled by ordinary Australian taxpayers.

The prime minister labelled Labor's plan a "tax grab" that is "robbing pensioners". "Have a word to your parents and they'll tell you how they feel about it and their friends".

Shorten refuted claims that pensioners would be hit hard, telling the Nine Network's Today Show the plan was created to save money and most pensioners would not be affected.

Speaking to reporters in Brisbane, the Labor leader rejected calls to water down his policy proposal, or exempt pensioners, following a vigorous initial backlash from seniors groups, the self-managed superannuation fund industry and shareholders lobby groups. "That's the lie that the treasurer and the prime minister are perpetrating today and again they perpetrated it on negative gearing. Why is it that Malcolm Turnbull will fight for millionaire welfare but not the welfare of battlers?"

Labor will abolish these refunds - which cost $8 billion a year - if elected.

Labor's proposed tax plan is theft, treasurer Scott Morrison declared yesterday, adding that the government would strongly oppose the opposition's pledge to scrap a commonly-used tax concession introduced by the Howard government in 2000.

Labor on Tuesday pledged to axe cash refunds for excess imputation credits paid to individuals and superannuation funds if it wins the next federal election - reversing a policy John Howard put in place almost two decades ago.

Treasury analysis of Tax Office figures leaked to News Corp suggest that up to 5000 Australians collecting more than $180,000 a year in taxable income would lose $20,000 in refunds, while 610,000 people on less than $18,2000 a year would lose $800 a year in cash returns.

The government said 97% of people who get franking credit refunds have a taxable income below $87,000, and more than half of the beneficiaries have taxable incomes below the tax-free threshold.

"The fact is a lot of the income people receive in retirement is "tax free" because it comes out of retirement-phase super funds", the shadow treasurer said.

Bowen said it would affect 200,000 part pensioners, and around 14,000 full pensioners, and save the budget $5 billion a year.

Former prime minister Tony Abbott argued the Coalition had a "credibility gap" on superannuation, given the adverse changes his successor Mr Turnbull tried to introduce before the 2016 election.

"To stop a Shorten government there's got to be a more effective attack and the difficulty is. there is a bit of a credibility gap here, and this is what needs to be addressed".

Even though the wealth of older generations has increased in line with asset prices, noted Wood, Coates and Daley, the share of older Australians who pay income tax has almost halved (from 27 per cent to 16 per cent) in the past two decades.

Labor's policy has launched a debate over what constitutes a "low income" and "high income" retiree according to Australia's tax system.

Related News:

Most liked

EU agrees crackdown on aggressive tax avoidance
Information about the schemes will be compiled in a centralized database and shared among the 28 European Union member countries. Tax planning intermediaries who fail to comply with the rules will risk fines or sanctions set by individual member states.

Ginebra defeats SMB to narrow semis gap
The 23-year-old big man scored 12 points and also collected four rebounds and an assist in 33 minutes as a starter for Ginebra. Aguilar 25, Tenorio 18, Caperal 12, Cruz 12, Devance 11, Thompson 9, Mercado 8, Ferrer 0, Manuel 0.

Krispy Kreme Confirms Autumn Opening For First Irish Store
Get ready to gain on an easy 10kg by the end of the year 'cos it's just been announced that Ireland's first Krispy Kreme will open.

Case Keenum To Sign With Denver Broncos
Moreover, she's heard that the Broncos didn't even bother to hurl an offer toward Cousins' general direction for that matter. There were some things that we should have done, that we should have done differently that we didn't do.

Florida shooter faces death penalty for school massacre
And while Nikolas Cruz opted to stand mute , the outlet pointed out that it still has the same immediate effect as a not guilty plea.

Oprah Winfrey makes James Corden cry on 'Late Late Show'
DuVernay cast bi-racial actress Storm Reid as teenager Meg and populated the film with actors of multiple ethnicities. Later in the evening, Oprah went for some laughs as she did a hilarious impression of an over eager Reese .

(NYSE:BSX) SVP John Bradley Sorenson Sells 1950 Shares
On Monday, April 25 the stock rating was maintained by Barclays Capital with "Overweight". (NYSE:KEG) rating on Friday, July 31. Boston Scientific Corporation shares increased 4.12 percent over the past week and rose 13.25 percent over the previous month.

France to sue Google, Apple over developer contracts- minister
Le Maire also commented on new tax measures the European Union is planning to apply to tech companies making online sales in Europe.

Ex Machina's Alex Garland Brings New Pilot to FX
It's already written [and] my plan at the moment is to direct the eight episodes, but for practical reasons that might not be possible.

Sega Mega Drive Collection headed to PC, PS4, Xbox One
It remains unknown who removed the trailer, but if it were SEGA, this wouldn't be the company's first blunder like this. Although the video below is the American version, since it goes by the name of Sega Genesis Classics .

Track Cryptos with Blockchain to 'Fight Fire with Fire — IMF's Lagarde
New , low-cost payment methods could empower millions of people in low-income countries who lack traditional bank accounts. For Lagarde, the biggest concern is the anonymity that makes crypto assets so attractive to many.

Without Power in Mass. as Nor'easter Blizzard Whips State
Bangor also could get between 12 and 18 inches, while northern Aroostook County is expected to get between 6 and 12 inches. Amtrak temporarily suspended its Northeast Corridor Service between Boston and NY until at least 11 a.m.

Microsoft reportedly opening two new data centers in Germany
AWS announced plans for a Bahrain data center last year, which it expects to bring online early next year. Microsoft will follow Amazon Web Services in committing to a data center presence in the Middle East.

Celebrate Pi Day in Charlotte with free pie, pizza deals and more
In 2009, Congress passed a non-binding resolution to make March 14 permanently Pi Day, which basically means it's beyond legit. Cici's Pizza Buffet: Participating locations have a coupon for a $3.14 dine-in buffet with the purchase of an adult buffet.

Cathay's operating loss almost triples in 2017
Hong Kong conglomerate Swire Pacific is the largest shareholder in Cathay with a 45% stake, while Air China owns 29.99%. Cathay has been booking losses on its hedges after crude oil unexpectedly tumbled from more than $100 a barrel in 2015.