Economy

Labor's Tax Plan Could Help

Labor's Tax Plan Could Help”

That was a boon to wealthier retirees, most of whom have their own super fund and pay little or no tax, and who receive the tax credits back from the Tax Office as cash.

Labor will also give all businesses an instant $20,000 asset write-off to encourage new investment, making the Government's tax break permanent.

In a speech on Tuesday morning Mr Shorten said, if you have accumulated $4 million in superannuation, congratulations, but I just don't believe you need help from other taxpayers to turn that into $8 million.

The imputations scheme was introduced under Paul Keating to make sure company profits weren't taxed twice - once with corporate tax, and again with personal income tax.

The Howard government introduced a measure in 2001 where shareholders could claim a cash refund from the Tax Office if the value of their tax credits exceeded their tax liabilities.

"Labor's announcement today confirms Bill Shorten will now hit Australians with more than $200 billion in higher taxes if they are elected", he said in a tweet on Tuesday.

Self-managed super funds are a major beneficiary of the scheme, with some investors who pay zero tax still getting cash refunds of as much as $2.5 million a year.

Federal treasurer Scott Morrison has called the proposal a $59 billion insult to pensioners, retirees and low-income earners.

"It is a 59 billion AUD tax hike, whatever way you look at this, this is an increase in tax, Labor can come forward with this proposal but they shouldn't try and dress it up as something it isn't", Cormann told Australian Broadcasting Corporation (ABC) radio.

Labor says Australia is the only developed country in the world with a fully refundable imputation credit scheme.

The policy would apply from July 1 next year under a Labor government and only affect future earnings from then on.

Shadow treasurer Chris Bowen says the changes have the approval of the original system's architect, Mr Keating.

"A small number of people will no longer receive a cash refund - but they will not be paying any additional tax", Mr Shorten said.

"It will however, cause some ructions in equity markets where tax refunds of excess imputation credits have been an important part of the investment matrix for equity investors, particularly self-managed superannuation funds", said Mr Deutsch.

"We're saying to Australian business "if you spend, we will reward you", he said.

"Under Labor's plan, anyone in retirement and living on their superannuation savings will now have every dollar of their income from dividends taxed at a rate of at least 30 per cent".

Investors can use the imputation to reduce the tax they pay on that dividend.

"Firstly, this change only affects a very small number of shareholders who now have no tax liability and use their imputation credits to receive a cash refund".



Like this

loading...
loading...

Latest


13 March 2018
Barcelona star Lionel Messi welcomes his third son Ciro
Messi and Antonella, who got married last summer in their native Rosario, already had two sons, Thiago, 5, and Mateo, 2. Barca made the announcement on social media and said they had replaced the 30-year-old with defender Yerry Mina.

13 March 2018
Thomson Reuters Launches Bitcoin Sentiment Data Feed for Crypto Traders
The positive or negative news stories can spread quickly throughout a web of crypto news sites, social media and forums. Market sentiment plays a huge part in the crypto industry.

13 March 2018
Klopp feeling 'massively rubbish' about Liverpool mistakes
Marcus Rashford scored twice within 25 minutes before an Eric Bailly own goal gave Liverpool hope midway through the second half. Klopp charged down the Old Trafford touch line to berate Lovren late in his side's 2-1 defeat on Saturday.

13 March 2018
Frantic Dispatch, 911 Calls Released In Florida School Shooting
Kristi Gilroy, right, hugs a young woman at a police checkpoint near Marjory Stoneman Douglas High School in Parkland, Florida. The sheriff's office and school district argue the footage is protected from disclosure under the state's public records laws.

13 March 2018
Centaurus Financial Inc. Invests $211000 in Micron Technology, Inc
Stock: I Got Your Super-Cycle Right Here" on March 05, 2018, also Investorplace.com with their article: " Micron Technology , Inc. KeyBanc Capital Markets upgraded Micron Technology , Inc. (NASDAQ:MU) earned "Buy" rating by Credit Suisse on Wednesday, June 14.

13 March 2018
Itau Unibanco (ITUB) Given News Sentiment Score of 0.14
Arrow Financial Corp decreased its stake in Cummins Inc (CMI) by 17.22% based on its latest 2017Q3 regulatory filing with the SEC. The bank reported $0.26 earnings per share for the quarter, missing the Thomson Reuters' consensus estimate of $0.29 by ($0.03).

13 March 2018
Vail Resorts (MTN) Shares Up 5.4% After Earnings Beat
On Thursday, the company said it was expecting fiscal 2018 resort earnings to fall between $607 million and $627 million. Oppenheimer & Company Inc bought 4,626 shares as the company's stock declined 8.49% while stock markets rallied.

13 March 2018
Analysts Suggest to Hold financial stock: New Senior Investment Group Inc. (SNR)
Finally, ValuEngine cut Lexington Realty Trust from a buy rating to a hold rating in a report on Friday, February 2nd. Principal Financial Group Inc. raised its holdings in shares of Physicians Realty Trust by 2.9% in the 3rd quarter.

13 March 2018
Stocks to Watch For: Pandora Media, Inc. (P), Southwestern Energy Company (SWN)
That is, if security is continuing higher in an uptrend, the amount of the protection should also increase and vice versa. After a recent technical review, shares of Southwestern Energy Company ( SWN ) have a 200-day moving average of 5.49.

13 March 2018
First Heartland Consultants Inc. Has $596000 Stake in JPMorgan Chase & Co. (JPM)
Maltese Capital Management Llc sold 70,800 shares as the company's stock declined 6.15% while stock markets rallied. Since October 25, 2017, it had 1 insider purchase, and 9 selling transactions for $22.34 million activity.