Franking credit ire

Retirees make a stand

LABOR is facing a revolt from its own voters over its policy to axe refundable tax credits for self-funded retirees,.

Retirees with self-managed super funds stand to lose thousands of dollars every year from Labor’s move to end franking credits, as the Coalition looks to make it a key issue at this year’s federal election.

It comes as Labor has called for Victorian Liberal MP Tim Wilson to step down as chairman of a parliamentary inquiry investigating its policy.

Albion resident Jim Samson, 75, plans to retire next year after working for 50 years as a nurse.

Mr Samson said he stood to lose about $13,000 a year in franking credits — about a third of his post-retirement income. “I have voted Labor my whole life, that will not be happening this year,” he said.

The policy will save the Budget about $56 billion over a decade and Labor has vowed to put the money into schools and hospitals.

Mr Wilson, the Member for Goldstein, said he had heard from many people who have voted Labor their whole life “and now feel betrayed by their own party”.

The Liberal MP has been under fire from Labor for including a Liberal petition against the policy on a website promoting the parliamentary inquiry into the policy.

Opposition treasurery spokesman Chris Bowen said 96 per cent of Australians didn’t receive the benefit and “all Australians will benefit from better schools and hospitals”.

“After six years of drift from a chaotic and divided government Australians are yearning for a party that is upfront about its decisions, is principled on policy, makes the big calls and sticks to them,” he said.