Industry Super Australia is in the news for Bill Shorten’s plan to take away the tax refund that some SMSF’s and low income individuals receive for the franking credits attached to dividends received from their investments.
It would seem that Industry Super Funds, many of which have links to associated Trade Unions, would like to be given this competitive advantage over SMSFs to discourage their members from taking control of their own superannuation investments.
Industry Super Funds receive franking credits from their investments and simply use them to reduce the overall tax they pay. The franking credits received on behalf of those of their members who are in pension mode and typically would be exempt from tax on their earnings are simply offset against the 15% tax of those members not yet in pension mode. Industry Super Funds would seem happy to receive in full the franking credits for members in pension mode but want SMSF pension members to be denied the franking credits.
Perhaps self-interest is more important to them than the “fair go” of equal treatment fundamental to the Aussie Culture.