IN response to the letter from Kristina Keneally (Oberon Review, February 28), the only misrepresentation regarding franking credits is coming from Bill Shorten and Chris Bowen and the Labor Party.
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Their policy, if implemented, will mean that these dividends are taxed twice. How could this deliver a fairer Australia as Kristina claims? Especially when industry superannuation funds (owned by the unions) and pensioners who own shares will be exempt. We will have two classes of citizens. Having a superannuation fund is not an illegal procedure and has been endorsed by successive governments of both persuasions.
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Compulsory superannuation was introduced many years ago to allow people to provide for their retirement without being a burden on the government. These same governments have urged people to save and invest during their working lives to provide a livable nest egg for their old age. The only way most people could do this was by buying and accumulating shares over a long period.
It is a fairly simple procedure and one does not have to be a financial wizard to do it. It only requires the determination to forgo some pleasures and possessions for the long-term gain. Self-funded retirees have factored these franking credits into their retirement income and they are vital to maintaining a satisfactory standard of living.
While Labor has been campaigning about stagnant wage growth, it seems hypocritical that they are prepared to slash the incomes of the old and vulnerable. These people have worked long and hard to do exactly what the government has requested and now, after obeying all the rules, their superannuation is being pilfered.
Kristina Keneally won't have to worry about franking credits. She will have a very generous parliamentary pension which won't be double taxed. Retirees will be unable to restructure their affairs without considerable financial loss and even grandfathering the policy would not justify double taxation. Despite what Kristina says, Labor will not give all Australians a fair go.
