Speaking at a Financial Services Council/Industry Superannuation Network event, Mr Bowen said the Coalition’s announcement that listed companies will not be granted franking credits for the levy represented “double taxation” on shareholders.
Double taxation has not existed in Australia since 1987, he said.
As a result of the policy, Australia’s self-funded retirees would face a $1.6 billion a year “slug” – which equates to roughly $1,000 in extra tax for a half-million dollar portfolio of Australian shares, said Mr Bowen.
The proposed levy is “a retrograde and amazing thing for an alternative prime minister to be offering the Australian people in an election context”, Mr Bowen said.
“It impacts on every investor, every superannuant and every superannuation policy holder,” he said.
The decision to make the levy exempt from franking credits flies in the face of the Coalition’s past claims that there will be no adverse changes to superannuation, said Mr Bowen.
Australia’s charities and non-for-profit organisations will also be affected by the levy because dividends are an increasing part of their income stream, he said.
“[Charities and not-for-profits] rely on franking to provide the necessary tax relief for the work they do around Australia,” Mr Bowen said.
“I’m not sure if the Liberal Party realised what they were doing … but I know the impact is negative and should be resisted,” he added.
