The current dividends taxation system ensures company dividends received by Australian resident shareholders are taxed under a system known as ‘imputation’, meaning taxes paid by companies are allocated to shareholders by way of franking credits attached to dividends. So, for instance, if you receive a franked dividend, you may be entitled to a franking tax offset and refund. However, a new proposal has been recently proposed to change this!
On March 2018, the Labor Party proposed a tax policy that will remove the refund of excess franking credits received from dividends. BGL thinks Labor’s franking credit policy is discriminatory, unfair and will negatively impact many of our clients and their clients, especially self funded retirees. Therefore, we are supporting the SMSF Association in their lobbying efforts against this dumb idea.
If you wish to express your opposition, the SMSF Association has drafted a letter that can be sent to Federal Members of Parliament (MPs) and Senators. The letter details the policy weaknesses and can be sent by you as a personal letter to your MP and Senators or forwarded to your clients, who can then send to their representatives.
To submit your letter is easy, all you have to do is follow the steps below:
- Click here to download the letter template
- Click here to find your local MP and Senators
- Fill in the highlighted sections on the letter
- Submit the letter to your Local Senators or Members of Parliament
Any additional feedback or client scenarios that illustrate the negative effects of the policy can also be shared/discussed at BGL Community.
Join us to have your voice heard!