Impact on SMSFs: Withdrawal of refundability of franking credits

Natalie Raju and Damian Ryan look at the possible impacts on SMSFs and other superannuation funds from the ALP's proposed withdrawal of refundability of franking credits.

Australia currently has a policy setting which exempts from tax superannuation fund earnings in the pension phase, whilst also allowing for the refundability of franking credits. Given the ageing population and larger proportion of superannuation members moving into pension phase, that policy setting is arguably becoming fiscally unsustainable in the long term. One policy setting to place a cap on this growing tax expenditure, is to limit the amount of funds in pension phase. The Government ...

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Authors: Natalie Raju, Damian Ryan

Published Date: 12 March 2018