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Waterson Accounting

15th Dec 2018 | by: admin


Commentary regarding the ALP’s imputation credits policy is increasing given the imminent federal election and the likelihood of an ALP government.
Under the policy taxpayer’s who were not already in receipt of a full or partial Age Pension as at the 28th March 2018 will no longer receive refunds of excess franking credits.
Whilst the change would affect individual tax returns, much of the commentary has centred on the implications for self-managed superannuation funds.
For SMSF’s in pension phase currently receiving franked income where no member of the fund was in receipt of an age pension as at the 28th March members may wish to consider one or more of the following options in the event that the policy becomes law in its current form:

  • Diversification of asset holdings within the SMSF to other income yielding assets, e.g. international shares, property trusts, fixed interest investments etc.
  • Admitting another family member into the SMSF who is not in pension phase.
  • Rolling the member’s balance into an industry or retail fund. The majority of these funds would still be able to utilise franking credits due to the dominance of members in accumulation phase.

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