An article in the Sydney Morning Herald today (20 Nov 2018) written by journalist Colin Kruger, outlines the negative repercussions behind Federal Labor government's plan to remove refundable franking credits on share dividends.
The article highlights the fact that this Labor proposal will affect self funded retirees by wiping out a substantial amount of their retirement income.
This is yet again another example of Labor policies that fail to care about the consequences of their introduced legislation.
Poor returns elsewhere are forcing retirees to invest into riskier investments.
This is where a parallel can be drawn with the QLD Land Tax & Absentee Surcharge to reveal yet another deplorable Labor legislation that is devastating self funded retirees. The taxes are extremely punitive and create bills totally disproportionate to what a resident staying in Australia would be paying.
In the same vein, Labor try to justify the removal of franking credits as it "mainly benefits millionaires who don't pay income tax". This mindset is exactly what Labor claim about Absentees - we are all apparently rich as well. A 'Robin Hood' tax.
QLD Labor are ruining lives for a mere $20- $30 Million in taxes, which State wide is not huge - unnecessary unjustified greed. And those taxes (thefts) to be likely wasted on things absolutely useless.
Don't get me wrong though, it is not only Labor doing wrong to its Australians - Federal Liberal under Turnbull/Morrison regime have also created huge grief to those who are offshore and become non-residents - their proposed removal of CGT exemption for Primary Residence properties - causing massive anxiety and uncertainty in a falling market what to do - with the talk that the Bill may not pass. The ATO doesn't even know exactly how the legislation works and several accountants cannot concur on the interpretations. There is a lot of confusion around this drafted Bill. it is causing many to already be losing money on sales/withdrawals from sale, selling in a downturn, etc, with June 2019 deadline approaching.
Federal Liberal's justification was that it is part of overall strategy to avoid the housing bubble. That is well and truly happening now and it is falling dangerously fast - towards economic collapse. And it has nothing to do with non-residents. Time for Morrison to withdraw this Bill and stop causing suffering.
Time for these governments to stop meddling in investment assets with legislation passed by their predecessors.
Link to article:
it-s-not-their-money-retirees-vent-anger-at-labor-dividend-tax-plan
No comments:
Post a Comment
Note: only a member of this blog may post a comment.