Tuesday, 13 March 2018

WTF is are "excess imputation credits" - $8 billion/yr claimed by well off Aussies (video)

I've never heard of such a thing. Might as well be talking another language. I read the article and I still don't have the faintest idea what "tax imputation credits" are, but apparently this lurk of the well off is pulling $8 billion dollars out of gov revenue if left unchecked. Which opposition leader Bill Shorten wants to stop if Labor wins gov.

The fact that the average person in the community probably also hasn't the faintest idea what tax imputation credits are, is probably the point? They don't want you to know.

 To ordinary people it's a lot of mumbo jumbo. Yet it allows such largess by those well off enough who can afford an accountant to suck money from the public purse. This  is the sort of thing that constantly happens in Australia, the well off get tax minimisation whilst the poor, under this gov get demonised, punished, and robodebt. All to scrape chicken feed out of those who can least afford it.
In a speech in Sydney on Tuesday, Shorten will characterise the current arrangements as “unsustainable largesse for high-income earners”, which, if left unchecked, will cost the budget “$8bn every single year”.

 Shorten will argue the Howard government’s extension of the scheme “entirely distorts the original design of the dividend imputation system” and has left Australia as the only country in the OECD with a fully refundable dividend imputation credit system.

 The crackdown, commencing on 1 July 2019 if Labor wins the next federal election, would affect about 8% of taxpayers and about 200,000 self-managed super funds, and will likely spark a substantial backlash from wealthy retirees and the politically influential super lobby.

 The measure is a revenue bonanza for an opposition that has already made big commitments in education, welfare and health – clawing back $11bn in two years, with the estimated medium-term saving of $59bn. The Guardian

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