Is this the first step to abolishing franking credits?
Have we seen the first step towards the government abolishing franking credits, as occurred in the UK in the 1990s? If so, this is a major problem for Australian investors, particularly those with superannuation.
Which is almost everyone.
Abolishing franking credits could halve retirement incomes.
The Budget and Franking Credits: What Happened?
Australian investors suffer a $1.4 Billion reduction in their dividends due to a 7% loss of franking credits in the Federal budget. The cause of the reduction in franking credits is the decision that the new 1.5% company tax for paid parental leave (PPL) will not have franking credits.
