The house and Government of the Commonwealth of Australia and the Opposition were requested by the Australians, not to change the Current Franking System that will unfairly discriminate against hundreds of thousands of Australian Share Investors who rely on dividends, both working and retired. Shares are the most popular Asset held in Australia’s more than 600,000 Self Managed Super Funds.

In my opinion, Labour’s proposal on franking credits would have a huge impact on self-funded retirees and could force them into looking at alternative investment strategies such as property, fixed income or potentially riskier overseas shares to make up the shortfall. While Labour says the policy will most affect wealthier people, I feel the biggest group who will be hit by the tax change will be self-funded retirees with a nest egg below the $1.6 million transfer balance cap.