Page 1583 - Week 05 - Tuesday, 14 May 2019
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Canberra, of course, has a large number of self-funded retirees, as well as pensioners, that have modest share investments. These families have their modest investments, often in high yield, high dividend blue chip stocks. A lot of them are Australian brands that we all know and depend upon. These stocks provide an income stream on which these families depend. So when this franking credit is provided, it gives a little bit of relief to those that are not in a tax bracket that pays more than 15c in the dollar. Those who are often below the tax-free threshold receive a return of the tax paid by the company on their behalf. That is what the franking credit is.
We think it is just that that 15 per cent franking credit is given back to the taxpayer as a refund in lieu of the tax paid on their behalf by the company. Labor’s policy actually rewards people in higher tax brackets who can offset that franking credit against taxable income or tax paid. But thousands of Canberrans—the thousands of Canberrans that Andrew Leigh struggled to name, the thousands of Canberrans that Andrew Leigh could not identify—will be much worse off as a result of what Labor is proposing. Andrew Leigh did not know that 15,000 retirees will lose on average $1,800 a year as a result of what Labor is proposing.
Across Australia the tax will impact about one million Australians. One million Australians will be worse off. Again, it is important to stress that these are one million Australians that are receiving such a low income that they are not even in a tax bracket that pays tax at more than 15c in the dollar. This is significant. This retiree tax that Labor seems so determined to put in place, should they win this election on Saturday, will be compounded further by the many risks that they pose to the property sector, be you a home owner or a renter.
These issues combine to make the Labor Party a very high-risk prospect for Canberra’s families, particularly Canberra’s seniors. Under Labor’s retiree tax, high income earners will get the full benefit of franking credits. But it is those on the lower incomes that will be worse off. If the ACT Labor Party are serious, if they are fair dinkum about standing up for Canberra’s seniors, they will stand up for the 15,000 Canberrans that are going to be hit hard by federal Labor’s change to franking credits. I very much hope that the ACT minister for seniors has taken up this case with his federal Labor colleagues. Or is he just going to sit back and allow 15,000 Canberrans on low incomes to lose on average $1,800 per year?
When you put that on top of increases in rates, taxes, fees and charges, that has a real impact on the quality of living here in the ACT. What that does is dishonour seniors in our community. It says that our local government and a federal Labor government, if elected, do not appreciate, do not honour, do not thank you for decades of service to the country.
I am delighted that we are able to discuss this in the matter of public importance, because it is so important that everybody in the ACT knows exactly what the cost of federal Labor would be, should they be elected on Saturday. I very much hope that our own minister for seniors has the courage to stand up to federal Labor and to do whatever he can to get a reversal of this position.
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