Dividends boost part-pension
FRANKING CREDITS TAX DEBATE
I AM concerned about the retiree tax that is to be applied by Mr Shorten when he wins the election. I am in receipt of franked dividends which my wife and I rely upon to supplement our part-pension. These dividends will cease to be paid to us under the proposed Labor Party policy. I note Labor claims the policy will rake in $55 billion and spokesman Mr Bowen has said if we don’t like it, vote for someone else. Well Mr Bowen, that is exactly what we intend to do. The Australian Taxation Office has indicated there are 3534 people in the Braddon electorate alone who will be affected. I would urge the other 3532 affected persons to do the same. tax-deductible expense. The lending authority or bondholder declares interest payments as income and pays tax at their marginal rate. Why can’t we treat dividends as a tax-deductible expense for the company and as taxable income at their marginal rate (generally higher than company tax) for shareholders?
Tax office demands
LABOR recognises wealthy shareholders have already paid tax on some shares and makes allowance. So why doesn’t it do this for shareholders that shouldn’t pay tax at all? Surely if the tax office has made a mistake by taking tax from people who should not pay tax then this tax must be returned. When they discover they’ve made a mistake by not charging sufficient tax they most certainly don’t hesitate to send out a tax demand to correct this mistake.
It’s their own money
READER Ute Mueller is under the false impression self-funded retirees are subsidised by the ordinary taxpayer (Letters, February 10). People receiving a refund of franking credits are receiving their own funds, paid by companies in which they have invested. A person buys shares in a company and becomes a part-owner of that company. The company makes a profit. It pays 30 per cent tax on that profit and pays a dividend to the shareholder. It lodges a 30 per cent franking credit with the Australian Taxation Office on behalf of that shareholder. Shareholders who conduct a self-managed superannuation Port Arthur wrestles with visitor surge Sad thing about having 3000-plus people visit in one day is, it feels disrespectful to the site, over years it has become a place of almost quiet reflection. Have made the error of being there on a cruise ship visit, not comfortable at all. fund in the allocated pension phase have those franking credits returned to them, because those funds are tax-free under existing law. They are getting their own funds back. These are people who invested their life savings under rules Labor is determined to change. Labor is discriminating against people who are not a drain on the public purse. They are not receiving a pension. To top it off, Labor will exempt seven categories of fundholders including industry super funds. The Labor policy is discriminatory and totally unfair.
Not the same as tycoons
THERE is a vital fact Labor’s proposal to restrict franking credits refunds ignores: franking credits are the equivalent of payas-you-earn tax instalments. In both cases, the government receives tax before the taxpayer’s obligations are established. As far as I can see, nobody objects to low wage earners receiving a refund of income tax already paid. But the small shareholder is assumed to be in the same boat as the unscrupulous tycoon who somehow reduces his taxable income to zero. No details are given of how the latter performs this task; it just seems to be assumed it happens and some of the costs must be clawed back regardless of collateral damage. Most small shareholders have already paid tax on their income. Investing some of that income in shares or super saves government from paying a pension. Labor’s proposal is not only unfair: it could result in higher pension costs as shareholders cash in investments and go on the pension after taking a few extra holidays.
Surveillence fears illogical
FEARS of a surveillance state following the use of facialrecognition software to produce new Australian passports seem illogical in a Facebook and Instagram-besotted world, where pictures of what people have eaten for breakfast are common fare amongst those addicted to communicating the minutiae of their doubtlessly deep and meaningful lives. In short, a fear of recognition in a selfie-obsessed world isn’t just illogical, it’s absurd.
Charging dead people
AMP has admitted to charging insurance to people who were dead. So, who paid the premiums?
Mountain belongs to people
THE State Government has shown it is determined to turn a mountain that belongs to the people of Hobart into a mountain that belongs to tourists. Sadly they are doing this all over the state.
Three wishes
NO, no, no … no cable car.
Power and politics
POLITICIANS are not people who seek power in order to implement policies that are necessary. They are people who seek policies in order to attain power. Not my quote, but Evelyn Waugh’s from 70 years ago with a prescient vision of the future of politics.