Labor tax plan to hit 10,000 in Corangamite

FEDERAL Opposition Leader Bill Shorten’s “hit the rich” tax plan will impact more than 10,000 taxpayers in the federal seat of Corangamite, ATO statistics have revealed.

Labor has announced plans to scrap $59 billion in refundable tax credits on share dividends, a move aimed at the rich but will also hit an estimated 200,000 pensioners nationwide.

The Howard-era reforms allow investors to claim a tax refund from the Government if their tax imputation was higher than the tax they owed.

Australian Taxation Office figures from 2014-15 reveal 10,852 taxpayers had franking credits refunded, with 2335 of that figure pensioners.

Mr Shorten has stressed the move does not mean those affected will be paying extra tax, but they would no longer be entitled to the cash refund.

Concerns have been raised about how the planned move will affect Australia’s aged population, especially those with self-managed superannuation funds.

Labor said yesterday it would not be offering compensation to pensioners affected by its plan.

On Wednesday, Mr Shorten said he would make sure they were OK “full stop”.

Yesterday he said reports of a compensation scheme for those affected were wrong.

But Mr Shorten was promising pensioners would be better off under Labor.