Labor/Greens - Economically Retarded Vandals

[Serial Brain 9]

The prospect of an ALP victory in the 2019 Federal election has had immediate impacts on financial firms.

The guardians of some of the ­nation’s trillions of dollars in ­equities investments are adjusting their strategies in ­anticipation of a Shorten government, with the $360 million ­Mirrabooka fund yesterday paying a special dividend to shareholders six months early, ahead of Labor’s planned changes to franking credits.

Australia’s biggest companies, including industrial, mining and popular blue-chip stocks such as the four major banks and Telstra, sit on an estimated $45 billion in franking credits that could be ­released to shareholders before a future ALP government rips up the nation’s dividend imputation system.

Mirrabooka, a conservative stockmarket investor based in Melbourne, announced it would pay its traditional end-of-year special dividend now rather than after July 1 to safeguard its ­investors in the face of growing uncertainty around the use of franking credits for retirees and pensioners.

It is believed to be the first public company to reshape its dividend policy ahead of this year’s federal election, which the latest polls suggest Labor will win.

Last year, Bill Shorten unveiled his franking credits policy to claw back nearly $60bn over 10 years by abolishing cash refunds for excess dividend imputation credits.

The early dividend payment comes after a US investment bank predicted the valuation of shares in Australia’s biggest banks could be slashed by as much as 13 per cent if the ALP policy was implemented and cash refunds were ripped from investors.

JPMorgan equity strategist Jason Steed said yesterday there was an increasing likelihood that companies with large franking credit balances would look to accelerate special dividends and off-market buybacks. JPMorgan believes other stocks most likely to take measures to realise franking credits in the near term are Caltex, Harvey Norman, Metcash, Rio Tinto and Woolworths.

Issuing its interim results yesterday to kick off the reporting season for 2019, Mirrabooka chief executive Mark Freeman said because of the uncertainty created by Labor’s dividend imputation policy, the fund believed it should pay special dividends now rather than wait to July when a Shorten government might change the rules.

“The feedback so far is if they (ALP) change the policy, then it will take effect from July 1 this year so if they get that through as policy, then from July 1 you will no longer get a refund cheque — and so if you put out the special dividend this financial year, people will still be able to have that as part of their return and potentially ­(receive) a refundable credit,’’ Mr Freeman said.

He said Mirabooka thought Labor’s policy was “very grossly unfair for investors and trying to shift the playing field in favour of managed funds over self-­managed superannuation”.

“We are feeling the potential pain of people if this rule comes in, and so let’s try to help them out now,’’ Mr Freeman said.

A spokesman for the opposition’s Treasury spokesman, Chris Bowen, declined to comment when asked about the Mirrabooka decision.

Federal Liberal MP Tim Wilson, who chairs the house economic committee’s inquiry into removing franking credits, said Mirrabooka’s decision did not come as a surprise.

“In the economics committee hearings, we’ve heard witness after witness saying they’re ­already restructuring their ­investment strategy so they won’t be hit by Shorten’s retirement tax,” Mr Wilson said.

“Some of the most disturbing evidence we have heard has come from financial advisers admitting they can help their clients around Shorten’s retirement tax, but those without financial advice or literacy won’t know they’re being slugged till it is too late.”

Mr Steed said any negative effects of the policy were most likely to be felt by the higher yielding sectors with franking, such as the banks and Telstra.

“You would certainly be minded as a board to consider whether or not using those franking credits in advance of a potential legislative change would be advantageous to your shareholders or to certain cohorts within your shareholder base,’’ Mr Steed said. “There are many companies that have access to franking that would arguably be … considering similar action.’’

Investment bank Citi warned in a report to its clients last week that potential changes to dividend imputation and the removal of cash refunds from investors was likely to have a significant impact on bank shareholders.

“We estimate that 10-20 per cent of shareholders receive cash refunds from bank dividends,” Citi said.

“Additionally, the value of franking credits continue to make up (about) 28 per cent of our major bank valuations, with any changes to dividend imputation policy likely to impact major bank (and other stocks more broadly) valuations as a consequence.

“Depending on the changes implemented, this could impact major bank valuations by up to 13 per cent.”

https://www.theaustralian.com.au/…/bbaa ... ee2407f9…?

For those who don't know - Fulled Franked Credits are money paid back to share holders who in turn pay no Tax on that money because the Company has already paid the Tax

So Shorten now wants to Tax that money as well - it means its double taxed

Some Self Funded Pensioners will have to go back on the Pension because they wont have enough to live on so will be a burden to the Tax Payer

ITs the same with his idiotic idea in regards to Negative Gearing - it'll slow growth in the building industry and jobs will be lost along with increased housing prices

Heres an idea Shorten - how about LIVING WITHIN YOUR MEANS!!!! and stop pissing away Australians Tax Dollars on FREE handout

[brian ross]

Oh, dear, rich people having to pay tax? How dreadful. I suppose he could always adopt the normal Tory policy of making the peons pay for everything, right?

[Neferti]

Oh, dear, rich people having to pay tax? How dreadful. I suppose he could always adopt the normal Tory policy of making the peons pay for everything, right?

So you are either on Welfare or a Low Income Earner .... with a beard (lazy) and sandals and socks (professional). Get real, Brian.

[cods]

it looks like shortarse wants both hands in your wallets....

well I guess someones gotta pay for all the money he is promising to throw around....

well I think thats how it works isnt it??.. take it from Peter to give to Paul..

something like that..

we know he wont be making any sacrifices dont we?

[Serial Brain 9]

it looks like shortarse wants both hands in your wallets....

well I guess someones gotta pay for all the money he is promising to throw around....

well I think thats how it works isnt it??.. take it from Peter to give to Paul..

something like that..

we know he wont be making any sacrifices dont we?

im not going to vote for either major parties cods but Greens/labor will be dead set last

ill put all independents to the top with ONE NATION at the top

but having said that

think about our current climate - its not too bad - the economy is going pretty good - inflation is low - unemployment is low and we are about to go back in the BLACK with our budget

thats the first Surplice since the Howard Government was in - the Labor/Green wrecked the economy for years and put us in massive "BUILT IN DEBT" , the Liberals are just about to get us out of that BLACK HOLE and back into Surplice!

so despite the inner rumblings and back stabbing - the Liberal Party is delivering on the Economy, Jobs, Illegal immigrants

why would anyone vote or the Labor/Greens party at the stage?

[brian ross]

Oh, dear, rich people having to pay tax? How dreadful. I suppose he could always adopt the normal Tory policy of making the peons pay for everything, right?

So you are either on Welfare or a Low Income Earner .... with a beard (lazy) and sandals and socks (professional). Get real, Brian.

Must be an election in the air...

[cods]

it looks like shortarse wants both hands in your wallets....

well I guess someones gotta pay for all the money he is promising to throw around....

well I think thats how it works isnt it??.. take it from Peter to give to Paul..

something like that..

we know he wont be making any sacrifices dont we?

im not going to vote for either major parties cods but Greens/labor will be dead set last

ill put all independents to the top with ONE NATION at the top

but having said that

think about our current climate - its not too bad - the economy is going pretty good - inflation is low - unemployment is low and we are about to go back in the BLACK with our budget

thats the first Surplice since the Howard Government was in - the Labor/Green wrecked the economy for years and put us in massive "BUILT IN DEBT" , the Liberals are just about to get us out of that BLACK HOLE and back into Surplice!

so despite the inner rumblings and back stabbing - the Liberal Party is delivering on the Economy, Jobs, Illegal immigrants

why would anyone vote or the Labor/Greens party at the stage?

I wont be voting anyone that is even close to labor/green thats for sure....

dont agree with you voting Indies either.....they split us even more.....for me it will be a long time comin g before we challenge the top two....

at least its the devil you know...lolol...

when you have a place full of Independents you have a dozen different agendas....and all that freaking behind closed doors wheeling and dealing doesnt do it for me.... look what happened with gillard......oakeshotts neck of the woods did really well.....she had no choice if she needed his vote

that to me is not good govt....its wrong....but it is what we have...


if you vote the way you say you will I do hope you will investigate them as much as possible.......it shouldnt be a bidding war for a vote..

[LEFTWINGER supreme]

Labor making the tough decisions and removing a generous concession

[cods]

by opening borders you mean....

the people smugglers are already girding their loins..

[Black Orchid]

Bill Shorten is set to fast track a referendum on the indigenous voice to parliament if he becomes prime minister, and hold the vote to change the constitution in the first term of a Labor government.

The Opposition Leader said a referendum to constitutionally enshrine the voice would be held in Labor’s first term.

Mr Shorten, when asked today whether the republic plebiscite would follow the first-term constitutional referendum, answered: “Yes.”

When asked if that meant the constitutional referendum would be also held in Labor’s first term, Mr Shorten answered: “Yes.”

https://www.theaustralian.com.au/nation ... 1547856890

So two referendums in his first term yet nothing on immigration except open borders

We do not need another republic referendum at this point in time!