Franking credits inquiry comes to Torquay

THE federal government’s controversial inquiry into Labor’s plan to change franking credits visited Torquay last week, with a score of people expressing their views on the policy.

Held at the clubrooms at Spring Creek Reserve, the public hearing was fronted by House of Representatives’ Standing Committee on Economics chair and Liberal MP Tim Wilson, deputy chair and Labor MP Matt Thistlethwaite, and Liberal MP Craig Kelly.

All but two of the 23 speakers used their strictly enforced three minutes of speaking time to criticise Labor’s policy, with several of them saying they would lose thousands of dollars of income if the changes to the refund of franking credits were implemented.

“The return of franking credits may well be the difference between having proper health insurance or none at all,” Eric Wells said.

Graeme Hawkins said not getting the refund would “impact on our ability to support needy charity groups”.

Corangamite Liberal federal member Sarah Henderson was among those to make a statement, in which she said “this retiree tax is unfair, discriminatory and an appalling attack on older Australians”.

Irwin Farris was one of only two people to support Labor’s policy. “Abolishing the present system of franking credits is a small price to pay if the money that would have been paid to shareholders is available, for example, to better healthcare services in the community – which those in this age group are likely to need sooner rather than later – or for the education of our grandchildren,” he said, and was greeted with a few hisses as he sat down.

In a statement emailed to this newspaper following the inquiry, Shadow Assistant Treasurer Andrew Leigh said Labor recognised that many beneficiaries of refundable franking credits had worked hard and saved hard, “but these reforms are vital to fix an unsustainable system”.

“Only 4 per cent of Australians receive cash refunds of their franking credits. Half of the money goes to people with more than $2.4 million in their superannuation accounts.”