Franking credit reform “fraught with danger”: IPA

4 February 2019
| By Hannah Wootton |
image
image
expand image

The fuss about franking credit reform looks set to continue at least until the Federal election, with the Institute of Public Accountants (IPA) today saying 95 per cent of its surveyed members did not support the change.

The Institute called the “piecemeal” approach to policy change both unfair and “fraught with danger”, and said that more self-funded retirees were becoming aware of the implications the reform would have on them.

“Any policy change that has inconsistent outcomes, [such as for] industry funds versus SMSFs and the pension guarantee rule, will struggle to meet the fairness test,” IPA chief executive, Andrew Conway, said. “In addition, retirees with large balances in excess of $1.6M in superannuation are also less impacted than those with lower balances.”

He called the reform suggested in the Henry review to tax personal savings across all asset classes as “a more holistic approach”, saying that this would be more beneficial than changing one lone aspect such as franking credits.

“We do not support any changes in the removal of refundable franking credits unless it is associated with more holistic tax changes to the treatment of savings more broadly,” Conway finished.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago