Robert Gottleiebsen a business columnist wrote for the Australian on 29 September, "battlers losers in Labor franking policy change. With about 1.4 million older people set to be directly hit be the ALPs franking credit savagery, the word is starting to spread among Australian families: "vote for the Coalition or children and grand children may have to support elderly parents or grand parents".
Industry commentators like Robert Gottliebsen have been writing that this policy change is not on the rich but rather older battlers trying to self-fund their retirement.
Now they have the facts, and are you ready for this? THEY WERE RIGHT!!!! Rich retirees are not among the 1.3 million people set to be directly hit by the franking credit savagery.
To learn more about "Franking credits and your SMSF"
The rich retirees that were intended to be targeted have been missed. The major hit will be on small corporate funds that have a large portion of retirees in pension mode. Most are still unaware their franking credits are about to be impacted. All in all there will be around 1.3 million people impacted.
What does all this waffling mean? In short... People in self-managed funds who registered for the government pension on March 28,2018 are allowed to retain their franking credits. But those who register for a government pension after March 28 are not. Unless you have your funds in an Industry fund.
If you would like more information please contact us.
The information provided in this BLOG is of a general nature only and has been provided without considering your objectives, financial situation or needs. Because of this you should consider whether the information is appropriate considering your objectives, financial situation and needs.