Proposal to abolish refundability of Franking Credits, page-328

The tax was paid on behalf of the share owner , the tax and the attached franking credit are the owners , legally taxed at their rate of tax says the ATO . This to avoid double taxation . If they were stolen from retirees then they would pay an effective 30% tax..ie double taxation.\

The debt was incurred by a labor Rudd Govt and a Shorton govt now wants to pillage to pay down this debt...

 IF you want a fairer system then ALL dividends that have paid the full tax should be tax free for ALL recipients

The Government will still get its FULL 30% tax

The retirees will miss out on the franking credits

Low income earners will not be taxed

All others will be taxed but only on their other income...

The caveat would be

The idea of providing incentive to people of pensionable age to become self sufficient was to make retiree pensions to be tax free and thusly

reduce the dependence on the old age pension . The govt would have done the numbers offsetting the tax free pensions against the old age pension and come out in front financial wise.

The govt as it has espoused before means testing was to provide people of pensionable age that is 65 an old age pension regardless .

The govt should then with the abolishment of the imputation system give ALL a non means tested 65 yr old age pension . Pensions from super should be mandated at a percentage of the fund and taxed at the individuals tax rate from a threshold from the old age pension.

   I am quite willing to  pay tax upon money earned in my super fund taken as a pension under those conditions.

   I think this tax grab by the Shorton government will lead to a majority of self funded retirees spending down their lump sums to get onto the old age pension which is counterproductive ..then we will get a mix of tax free pensions and old age pensions per person , the cost to the taxpayer will blow out ...then more means testing , increase of taxes etc...

  This is an extremely bad policy ...

  Add in the Bowen NG policy and you have a recipe for disaster .

The idea of NG was not to make people rich as such but implemented so that the govt read taxpayer would NOT have to provide the heavy burden of massive amounts of commission/trust housing. Once again the Govt would have done its numbers , NG IS a big cost saver.

the RBA Governor said this policy will tip Australia into recession.

 The Bowen NG policy will also include shares loans , marginal loans , and other forms of derivatives ....a recipe for disaster

 Added to the droves of investors leaving the market there would be the retirees seeking other alternatives or selling down assets to get onto the old age pension.

New properties will not be affected and properties before 28th march will be grandfathered...says Bowen....good grief....When these properties will eventually be put up for sale they will ALL be classified as existing ..who is going to buy them???

Yes these properties will devalue in price and yes they will become affordable for some BUT you need a job to buy a house and if/when these policies tip Australia into a recession..good luck on that one.

 Hers a tip..Investors are a lot smarter than any politician...why do you think we are having a property downturn....???

Investors are getting out before the Bowen Housing Titanic sinks perhaps....

 Like I said , take a copy of this blog ,if I am wrong then shove it up me , I hope I am wrong , I really hope I am wrong....