Here’s some audio of Chris Bowen talking about Dividend Imputation Policy with Michelle Grattan. (Runs: 1 minute 43 seconds)
Full podcast – Chris Bowen with Michelle Grattan at The Conversation: LINK
Labor is cracking down on a loophole that gives tax refunds to people who have a lot of wealth but don’t pay any income tax.
This loophole will soon cost $8 billion a year – more than we spend on public schools, or child care. It’s three times what we spend on the Australian Federal Police.
Most of these funds go straight into the pockets of a few very wealthy people who are already very comfortable. In fact, 95 per cent of the benefit accrues to the wealthiest 20 per cent of retirees.
Labor believes that scarce taxpayer dollars can be better spent on improving schools and cutting hospital waiting lists – so that’s what we are doing.
Labor will close the loophole so that people who don’t pay income tax don’t get a tax refund – and spend the money on schools and hospitals instead.
Labor will introduce a new Pensioner Guarantee – protecting pensioners from Labor’s changes to excess dividend imputation credits.
“The proposal announced by the Australian Labor Party to stop refunding imputation credits even where no tax has been paid by an investor will have little or no impact on the super of most Australians and the savings could modernise the super system if re-invested“. Industry Super Australia, 13 March 2018.
- Fact Sheet: Pensioner Guarantee (March 2018)
- Fact Sheet: Labor will maintain a fair pension system (June 2016)
- News Release: “Dividend imputation changes sensible but savings should be reinvested to modernise super” – Industry Super Australia (March 2018)
- Opinion: “How some of the wealthiest Australians pay ‘negative’ tax” – Australia Institute (14 March 2018)
- Opinion: “Australia’s obscene dividend imputation debate about who is poor” – Australia Institute (20 March 2018)
Updated: 28 May 2018