Andrew Leigh

THE TURNBULL GOVERNMENT: BATTLING FOR THE MILLIONAIRES

The Turnbull Government’s mistakes and misleading claims on Labor’s dividend imputation reform are continuing to pile up.

Yesterday, Senator Concetta Fierravanti-Wells told the Senate that:

More than half of all refunded franking credits are paid to individuals who earn less than the $18,200 tax-free threshold, including pensioners and self-funded retirees. Ninety-seven per cent of people who receive franking credit refunds have a taxable income below $87,000—people who have worked hard, saved hard and paid tax.

This is patently untrue.

While half the number of people receiving franking credits may have a taxable income of less than $18,200, independent analysis says 80 per cent of this concession benefits the wealthiest 20 per cent.

In regards to retiree income, excess imputation credits refunded to self-managed super funds, 50 per cent of the total benefits go to the wealthiest 10 per cent SMSF balances (which have balances in excess of $2.4 million).

Senator Fierravanti-Wells was later forced to correct her comments.

She also tried to employ her party’s dodgy tactics, but couldn’t even get that right - repeatedly referring to people on low incomes, rather than low taxable incomes.

The Turnbull Government has already been publicly shamed for these “misleading” claims, with Grattan Institute researchers emphasising:

Taxable income ignores the largest source of income for many wealthier retirees: tax-free superannuation.

This latest stuff up comes on the back of Scott Morrison misleading voters by saying “the government has never entertained” changes to cash back on the dividend imputation (they had) and that “dividends are no longer protected from double taxation” (they are).

It’s hard to tell if the Turnbull Government is deliberately misleading the people or if they just don’t know what they’re talking about.

THURSDAY, 22 MARCH 2018

Authorised by Noah Carroll, ALP, Canberra