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Labor’s tax plan explained

Article image for Labor’s tax plan explained

The Opposition leader is being accused of trying to “bamboozle” Australians with his new tax plan.

If Labor wins the next federal election, it’s promising to scrap a scheme which allows some shareholders to convert franking credits from their dividends into a refund.

It’s understood the move would affect more than 600,000 people on the lowest incomes.

Finance Minister Mathias Cormann tells Steve Bill Shorten is being deceptive.

“He’s trying to bamboozle people with technical language trying to suggest that somehow this is complicated.

“It’s not complicated. He wants low-income Australians to pay 30% tax on their income from dividends through shareholdings in companies.”

Click PLAY below for the full interview

Steve also speaks with CEO of the Australian Association of Super Funds Dr Martin Fahy about the effect this change would have on Australians’ superannuation.

Click PLAY below for Dr Fahy’s explanation of the tax changes

Steve Price