On December 6, on ABC's Radio National, Labor's Finance Minister, Mr Chris Bowen, stated that ,they have to use the money collected through franking credits to pay for tax cuts to those earning less than $100 000, now updated to $125,000.
Pensioners are supposedly exempt from this tax take but what about the self funded retirees who planned their retirement through superannuation and shares and receive somewhere between the pension ($24,000) and say $90,000.
I'm sure they would certainly object to giving up their modest hard earned income to give those on $100,000 a tax break.
Remember that most superannuants don't receive tax cuts, as most paid tax when earning the income.
This puts these retirees further behind. A lot of these superannuants did not have the benefit of salary sacrifice when planning and saving for their retirement, like future retirees can access.
Furthermore, if one has shares in a company, they are part owners of that company. If the company has paid the tax on their profits but, because one is below the income threshold, any tax that has been paid on their behalf, and does not have to be paid, should be returned to the taxpayer, not distributed to those on higher incomes.
What a ridiculous policy. It's almost back to the days of Robin Hood, although he took from the rich and gave to the poor.
I would not consider this policy "Fair For All Australians" at all.