Australian Federal Opposition attacks responsible saving
The Leader of the Opposition, Mr. Bill Shorten of the Australian Labor Party has promised to introduce, if he wins government at the next election, a policy of abolishing franking tax credits for all but public pensioners (full or part). This policy is unreasonable and unfair. He has also hinted at further financial attacks on self-funded retirees.
I am a self-funded retiree who has just enough income and just enough assets to not qualify for even a part pension. I certainly would not call myself wealthy by any means. This proposed policy will only affect the moderately comfortable self-funded retirees as the genuinely wealthy ones will not be affected by it. Those wealthy ones will earn enough from their investments so that they will get their franking credits off their tax and would not be in the position to receive a franking credit tax rebate anyway.
Each year I donate a similar amount to worthwhile charities as I receive in franking credit rebates. The introduction of your policy would mean that I would not be in a position to make those charitable donations. My father was also a self-funded retiree who did not possess great wealth. Due to dementia he spent the last three years of his life in a nursing home. Because he was not on a pension he had to pay approx. $1500 a week for the nursing home (I personally saw the bills and receipts). The Rudd government introduced a tax on self-funded retirees in nursing homes. My father had to pay approx. $1500 a week extra tax on top of the nursing home charges (I personally saw those bills and receipts also).
Governments over the years have verbally encouraged people to save for their retirements where possible and not be a burden on the public purse. Yet those people who do just this and become self-funded retirees are often punished for their thrift and responsibility. This new policy will further exacerbate this situation if introduced. In times of economic uncertainty and likely government shortfalls in revenue do we really want to encourage more people to go on the government pension and take less responsibility in managing their own finances?
I have voted Labor most of the time over the years. However I will not be voting Labor while this policy remains and I imagine considerable numbers of other self-funded retirees will be doing the same.