Flak flies over Labor’s plan to slash cash refunds

TREASURER Scott Morrison has attacked Labor for “stealing” money from pensioners in a “brutal tax grab” to pay for promises ahead of the next federal election.

The Turnbull Government has leapt on the Opposition’s plan to claw back an estimated $59 billion from more than one million shareholders, including many self-funded retirees, over a decade by axing cash refunds for excess dividend imputation credits.

The tax grab shapes as a major election battleground as retirees, seniors groups and superannuation funds con- demned the policy yesterday. Mr Morrison said Labor was “so addicted to tax they just don’t know where they’re going any more”.

“It violates terribly the simple principle that if you’ve paid tax on something, you shouldn’t have to pay it twice,” he said.

“The government should give that tax back to you if it has already had tax paid on it..”

Australian Taxation Office figures show more than half the 1.1 million individuals who get the refunds being targeted by Labor have taxable income of less than $18,200.

Modelling from the SMSF Association estimated the median retiree with a self-man- aged fund earned about $50,000 a year and would lose about $5000 under the changes.

SMSF Association boss John Maroney said Labor’s plan would “undermine confidence” in the system.

Opposition Leader Bill Shorten said the concession was unsustainable — it had been forecast to raise $550 million a year in 2001 but would cost $8 billion in the future.

“Mr Morrison can run all the scare campaigns he likes,” he said, adding Australians would be “appalled to discover” self-managed super funds were able to get such large taxpayer-funded cash bonuses.