“Bill Shorten plans to trash the tax-free threshold by denying refunds of company tax already paid,” Senator Leyonhjelm said.
“Denying refunds of dividend imputation credits would effectively be imposing a tax on people with taxable income under the tax-free threshold.
“Labor is lying when it says that people affected by their policy will still pay no tax. Dividend imputation credits reflect exactly the company tax withheld on behalf of these people.”
Senator Leyonhjelm said the move by Labor was a profound breach of trust towards self-funded retirees.
“It’s essentially a tax on superannuation withdrawals. Yet for decades Labor has pushed Australians to save in superannuation by promising no tax on withdrawals,” he said.
“Now, after Australians have saved in superannuation, Labor plans to deny refunds of dividend imputation credits, which represents the imposition of company tax on superannuants at the point they make withdrawals from superannuation.
“This is devious. It undermines trust in government. It is the definition of sovereign risk.”
Senator Leyonhjelm said tax revenues were already well above historical averages. Labor’s plan would unnecessarily ratchet up the overall tax burden on Australians.
“Debt and deficit are caused by uncontrolled spending, not falling tax revenues,” he said.
“And tax revenues are expected to balloon in the years ahead, even without Labor’s plan to deny refunds for dividend imputation credits, and even after accounting for the Government’s plans to reduce the company tax rate.” —