Labor is determined to lose the election

[Juliar]

Sounds like that rabid Socialist feminazi sheila has been blowing down ShortOnBrains's earhole.

How to lose an election without really trying.

The fowl influence of the utterly corrupt unions over the rubbishy Labor Party is becoming plainer as each day passes.

Do YOU want these corrupt union thugs running Australia into the ground ? Then VOTE for the union controlled Labor Party.




Labor vows to axe tax concession favoured by wealthy retirees
Luke Henriques Gomes Canberra correspondent 12:01am, Mar 13, 2018 Updated: 11:13pm, Mar 12


Labor has vowed to reform dividend imputation. Photo: AAP

Labor is set to provoke a new political fight on tax by pledging to scrap a Howard government-era concession favoured by wealthy self-funded retirees.

Opposition Leader Bill Shorten will use a speech in Sydney on Tuesday to announce a Labor government would end cash refunds claimed through dividend imputation, a move Labor says will affect about 200,000 self-managed super funds.

Currently, when a company pays a dividend out of after-tax profit its shareholders receive personal tax cuts, called ‘franking credits’, to prevent double taxation of company profits.

In 2001, the Howard government made the scheme more generous by allowing shareholders to cash in when their franking credits exceeded their tax bill to the government. Wealthy retirees get the biggest cash refunds because income from superannuation is tax free for people over 60.

Mr Shorten will argue on Tuesday the budget cannot afford to keep “tidy little arrangements for people who already have millions of dollars”.

“This is why a Labor government will restore the imputation system to its original design,” Mr Shorten will say, according to speech notes seen by The New Daily.

“Let me be very clear about this, Labor created dividend imputation, we understand its value and we will maintain it.

“Everyone will still be able to use imputation credits to reduce their tax, but not to claim cash refunds.”

Dividend imputation was introduced by the Hawke government in the 1980s, but only allowed shareholders to reduce their tax liability. Once their tax bill hit zero, any remaining franking credits were lost.

“The Howard-Costello subsidy entirely distorts the original design of the dividend imputation system,” Mr Shorten will say.

The opposition, which has already vowed to end negative gearing and crack down on family trusts, will pitch the reform as part of its bid to make the tax system fairer.

The policy will provoke a backlash from the self-managed super fund sector, which receives 90 per cent of the cash refunds in question, according to Parliamentary Budget Office (PBO) modelling.

Wealthy retirees who are “high wealth, low income” are likely to be hardest hit by the plan, according to a policy document.

Ordinary retirees paying zero tax on modest shareholdings could find themselves noticeably worse off, as they would no longer receive 30 cents back from the federal coffers for every 70 cents’ worth of franked dividends they receive.

About 200,000 self-managed super funds are expected to be impacted by the change, but it will have a minimal impact on APRA-regulated funds, a policy document states.

Larger super funds would likely make different investment decisions to blunt the impact of the changes.

Labor’s policy, which would come into effect from July next year and begin hitting future earnings from 2020, is projected to save the budget more than $5 billion a year. Keeping the concession would see the cost to the budget increase to $8 billion a year over the medium term.

The policy will not impact 92 per cent of taxpayers in Australia, according to the PBO.

Mr Shorten will argue the change will only affect “a very small number of shareholders who currently have no tax liability and use their imputation credits to receive a cash refund”.

“These people will no longer receive a cash refund, but they will not be paying any additional tax.”

Australia is the only OECD country that allows taxpayers to claim a cash refund for excess dividend imputation credits.

https://thenewdaily.com.au/news/nationa ... on-reform/

[Black Orchid]

Former treasurer Peter Costello has slammed Labor’s plan to shut off nearly $60 billion in corporate tax refunds for hundreds of thousands of taxpayers, arguing it hits low-income earners and risks up-ending two decades of bipartisan tax policy.

Speaking after Bill Shorten unveiled Labor’s latest plan to increase tax by almost $6bn a year — ending full cash corporate tax refunds for taxpayers with no or low tax liability — Mr Costello strongly objected to the claim such a change would affect only the rich.

“This does not affect high-income earners: they still get the 30 per cent credit. It will only affect low-income earners who will lose it,” Mr Costello said, pointing out that anyone with a low taxable income would be hurt by the change.

“If Mr Shorten’s proposal goes through, their tax refund will be taken by the government. This will affect millions of retirees, age pensioners and part pensioners. This is a tax rise for them.”

As treasurer in the Howard government, Mr Costello in 2000 allowed taxpayers to receive a cash refund if the value of franking credits from dividends received (which reflect company tax already paid) exceeded their tax liability. “This was a recommendation of the Ralph review of business tax in 1999. It was given bipartisan support. Labor voted for it. In fact, Labor claimed it would help low-income earners,” Mr Costello said.

Former Labor minister and then shadow treasurer Simon Crean said in parliament in 2000 that Labor had “no difficulty” supporting the change, saying it “improved the taxation situation faced by low-income investors, especially retired Australians”.

Robert Carling, a tax expert at the Centre for Independent Studies, said the burden of ending cash refunds would extend far beyond retirees with self-managed superannuation funds.

“It is clear that anyone with a marginal rate below 30 per cent (including Medicare levy) and who has any franked-dividend income would be disadvantaged by the change,” he said.

Almost a million taxpayers in the lowest two tax brackets (with taxable incomes up to $37,000, and therefore an average tax rate far below 30 per cent) received over $1.3 billion in franking credits in the 2015 financial year, analysis of Australian Taxation Office statistics shows.

“There would be a lot of retired people, below the tax-free threshold, holding a few CBA shares or Telstra shares who would suddenly lose 30 per cent of their dividend,” Mr Costello said, suggesting Labor’s policy would ultimately prove unpopular.

“Shares like CBA and Telstra will become a lot less attractive to retirees and super funds,” he said. Credit Suisse analysis shows 18 per cent of Telstra and 14 per cent of National Australia Bank are owned by SMSFs.

Mr Carling said Labor’s argument that ending refundabiltiy wasn’t a “tax increase” was disingenuous.

“It will lead to more tax revenue, and in my books that is a tax increase for someone. There won’t be nearly as much extra revenue as they think,” he said. Labor has pencilled in $5.6bn a year in extra revenue.

https://www.theaustralian.com.au/nation ... 5c34ff0b41

You Labor supporters really need to ditch Shorten if you want to stand a chance.

[Rorschach]

Labor are continually ahead of the Libs.... that hasn't changed yet.
Turnbull has always been ahead of Bill in the popularity stakes even though recently they are both pretty close in the unpopularity stakes.
Being unpopular in the polls never stopped Howard from winning.

I think Bill is more popular with average Australians than Turnbull. I think Turnbull in unpopular with true Conservatives too, something that will split the vote and not help at the next election.

Both leaders are on the nose with large groups of the population as are there parties.