Throughout the last year as I have gone through the 30 June 2018 SMSF financials with clients and pointed out to them the amount of franking credits they had earned in their fund and the value of them to their retirement income, many have been alarmed to hear of Labor’s proposal to deny them the refund of any excess franking credits.

There has been a lot written in the press about this matter and much of it amounts to bashing self-funded retirees for carefully using the system to develop portfolios that would deliver the best return for their capital in a way that suited their risk tolerance and bias towards Australian assets.

Well the Labor proposal now puts much of that hard work at risk and while we do not really know if their will be consequences for the economy of companies in which we invest, what we do know is that it will affect SMSFs that do not have at least one member who is currently receiving an age pension. This is very inequitable that one sector of society should be targeted by these measures

Time to Step Up and have your Say

The House of Representatives Standing Committee on Economics will hold public hearings in numerous locations in New South Wales and Queensland for its inquiry into the implications of removing refundable franking credits. I strongly urge you to consider going along to one of the hearings and voicing your opinion or support others who are going to speak but need some back-up.

From the Media Release:

The Chair of the committee, Mr Tim Wilson MP, said ‘the committee is examining how the removal of refundable franking credits would affect investors, in particular older Australians who have planned for their retirement under the existing rules and whose financial security could be compromised.’

Mr Wilson said ‘the committee has received well over 1000 submissions, including many from retires who are concerned they will be forced on to the aged pension if the ability to claim a refund on their franking credits is removed.’ ‘These hearings will provide an opportunity for Australians impacted by a change to refundable franking credits to address the committee directly with a three-minute statement, and we welcome their contributions and participation’. Mr Wilson said.

Public hearing details:

NSW

Merimbula, 9.00am to 10.30am, Monday, 4 February 2019, Merimbula RSL, 52-54 Main St, Merimbula, NSW

Chatswood, 9.00am to 10.30am, Friday, 8 February 2019, The Chatswood Club, Level One, G11 Help Street, Chatswood, NSW

Bondi Junction, 2.00pm to 3.30pm, Friday, 8 February 2019, Bondi Junction RSL, 1/9 Gray St, Bondi Junction, NSW

Queensland

Townsville, 2.00pm to 3.30pm, Tuesday, 29 January 2019, Pandora Room, Hotel Grand Chancellor, 334 Flinders St, Townsville City, Queensland

Alexandra Headland, 9.00am to 10.30am, Wednesday, 30 January 2019, The Bluff Function Room, Alexandra Headland Surf Life Saving Club, 167 Alexandra Parade, Alexandra Headland, Queensland

Paddington, 2.30pm to 4.00pm, Wednesday, 30 January 2019, Presentation Room, The Lavalla Centre, 58 Fernberg Rd, Paddington, Queensland

Eight Mile Plains, 9.00am to 10.30am, Thursday, 31 January 2019, Central Auditorium, Brisbane Technology Park Conference Centre, 1 Clunies Ross Ct, Eight
Mile Plains, Queensland

Upper Coomera, 2.00pm to 3.30pm, Thursday, 31 January 2019, Upper Coomera Centre, 90 Reserve Rd, Upper Coomera, Queensland

Further public hearings will be announced as the inquiry progresses. The hearings will be webcast live (audio only). A number of submissions have been received and are available on the committee’s webpage at: http://www.aph.gov.au/economics.

A number of submissions are currently being processed and will be published over the coming months. Submissions can be made online or by emailing economics.reps@aph.gov.au.

Media enquiries: Mr Tim Wilson MP—Electorate: 03 9557 4644; Parliament: 02 6277 2392

For background information:

House of Representatives Standing Committee on Economics Phone: 02 6277 4587;

Email: economics.reps@aph.gov.au;

Website: http://www.aph.gov.au/economics

Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why not contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

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