Wrong frank­ing credit rorts pol­icy

The West Australian - - AGENDA -

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

Kar­rakatta ceme­tery

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.

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