When it comes to franking credits, all public funds are not the same

Many SMSF trustees who may lose their franking credit refunds under Labor’s proposed policy are considering transferring to a large retail or even industry fund. It has become a common assumption that such a fund will give retirees access to franking credit refunds. For example, Robert Gottliebsen writing in The Australian last weekend said: “But the ALP plan is that if you save via an industry super fund or a large retail fund, then you can receive your cash franking in full.” This [...]

2019-05-16T01:40:54+09:30May 3rd, 2019|FinSec Post, SMSF|

What you need to know in the lead up to the Federal election

With the 2019 Budget week having concluded following the formal delivery of the 2019/20 Federal Budget by the Treasurer on 2 April 2019, and the Opposition response on 4 April 2019, it’s now “game on” in terms of policy positions as the electorate starts to consider where they will cast their vote in the upcoming election. For some voters, the decision on where they cast their vote will be influenced by where the future elected Government will focus their spending. In [...]

2019-07-31T00:52:11+09:30April 25th, 2019|Investment, SMSF, Superannuation|

Labor’s franking policy is a ticking bomb for all super funds

The Australian Labor Party (ALP) proposal to limit cash refunds of franking credits will clearly impact many pension phase SMSFs, but we believe it also has the potential to impact many other superannuation funds. In this paper, we build a model of the key variables which determine whether a superannuation fund is likely to lose refunds of net franking credits under the ALP proposal. Our model is consistent with and helps explain an article in The Australian which reported that $309 million in [...]