Labor’s Franking Policy Fails Fairness Test.

Labor’s proposal to remove the ability of some taxpayers to reclaim overpaid tax as a cash refund, yet at the same time allow other taxpayers to claim the same tax paid as an offset against their own tax liability fails the fairness test right there.

Labor’s Franking Policy Fails Fairness Test.

Added to the fact that shareholders adversely affected by Labor’s policy will, as a result of Labor’s policy, be forced to pay tax at a rate above their government set tax rate, and the Labor policy is shown to be the scam that it really is.

There Are No Costs Of “Refunds”, Compared to “Offsets”.

The reality is that a $1 refund of overpaid tax to one shareholder is budgetarily identical to allowing a $1 franking tax offset to another.

The $1 refund is the refund of $1 of previously collected tax which was collected in excess of that shareholder’s tax liability : A $1 franking tax offset is $1 of otherwise currently payable tax which will never be collected.

$1 = $1.

Labor’s Policy Seeks To Deny “Refunds” : But allow “Offsets”.

The realization that the $1 refund is not a “gift”, as falsely claimed by Labor, but a refund of tax collected by the ATO to which the ATO has no right to retain, based on the shareholders tax liability, further shows the cynical and discriminatory nature of Labor’s proposed policy.

Without doubt, the policy discriminates against shareholders who currently receive about $6 Bn if franking cash refunds, but would continue to allow other shareholders to retain about $34 bn in franking tax offsets.

$1 = $1.

Labor’s Policy Is Not Based On Economic Reality.

Given this simple fact, a school child should be able to recognize that Labor’s claims about “schools and hospitals”, “school teacher’s tax V retiree’s tax”, “Unsustainable cost”, etc simply hold no weight because $1=$1, and the franking tax offsets will still roll on.

Labor’s policy is a disgrace, based on no economic reality at all.

$1=$1 and that $1 comes from the withholding tax paid to the ATO by the dividend paying company.

The $1 does not come from the government, or any other taxpayer.