Wrong franking credit rorts policy
Labor deserves credit for wanting to stop the wealthy rorting the dividend imputation system. But their policy of not refunding excess franking credits is the wrong method — a blunt axe approach that denies low income earners the refunds they are entitled to.
Franking refunds are not the problem. The real culprit is the preferential tax rates given to super funds, particularly those in pension mode, which allow the wealthy to pay much less tax than they should and, as a result, claim significant franking refunds on their dividends.
The sensible fix is to treat super funds like individual taxpayers, but with a higher initial threshold, say $50,000.
Funds in accumulation mode would pay 15 per cent tax on earnings up to $50,000, those in pension mode no tax up to $50,000. In both modes, progressively higher tax rates, in line with individual rates, would apply once the initial threshold was exceeded.
This simple change would still provide incentives for self-funded retirement, while stopping the wealthy from using super purely for tax minimisation and rorting imputation credits.
Adopting this policy would also have other benefits, too. We could also to do away with contribution caps and the $1.6 million asset cap, significantly reducing complexity and compliance costs.
Mark Engelbrecht, Floreat
Recently, there was an announcement that the Australian War Memorial will be upgraded at a cost of $498 million. This is to respect the service and sacrifice of all Diggers past and present.
Yet here in WA, if a returned serviceman or woman is buried in Karrakatta cemetery, they will probably have their headstones removed.
They will now lay in unmarked graves. We will remember them? Not in Karrakatta cemetery. The redevelopment is obscene. Dianne Opie, Meadow Springs
Predicting the climate
With weekly weather forecasting so inaccurate, how can anyone predict the state of the climate and global warming 10 or 20 years into the future? Andre Nel, Karakin
Of race and crime
If there is no connection between crime and ethnicity, why is that the perpetrators on the front page of The West (5/11) looked like people of the same race?
Ray Wilkinson, Belmont
We should all get our fair share.