Smarter Smsf

The Opposition Leader, Bill Shorten has announced a plan today for the Labor Government (if elected) will change the dividend imputation system to only allow for franking credits to be applied to offset tax on taxable income, rather than act as refundable tax credits.  For many SMSFs, this refundable credit measure introduced back in 2000 under the Howard/Costello Government has played an important role in the vast sums of superannuation monies remaining invested within the Australian share market.  For some SMSFs, this franking credit refund added as much as 2% of the fund's rate of return each year and ensured that the attributable tax rate on the income reflected the rate of tax payable by the taxpayer - i.e. accumulation phase 15%, pension phase - 0%. The ALP would not release the costing, but said the (Parliamentary Budget Office) PBO found: The policy would save $11.4 billion in 2020-21 and 2021-22 The plan would affect about 200,000 SMSFs Some SMSFs received cash refunds of up to $2.5 million in 2