Nearly the entire investment industry has responded negatively to the impact of Labor’s proposed removal of franking credits.
According to a survey conducted by the investment firm Australian Stock Report, nearly 90 per cent of investors believe the proposal would reduce their quality of life.
In its submission to the inquiry into franking credits, the firm revealed that out of their 2,500 clients, over 89 per cent believed their quality of life would be reduced by the policy.
The clients with ASR are mostly aged 65 and over (70 per cent) and 62 per cent of its clients operate their own self-managed super fund.
The survey found that 64 per cent of respondents received an income of less than $75,000 a year and 84 per cent believed they would lose less than $30,000 a year as a result of the change.
The ASR provided numerous client case studies to the commission to support its survey and managing director Matt Roberts said they provided an overview to the proposal’s impacts.
“The case studies provided as an appendix to this letter provide an overview of the kinds of potentially widespread impacts that we foresee. We would be delighted to provide any further information to the committee that may assist it in its present task,” he said.
Mr Roberts said in his submission to the parliamentary inquiry that 70 per cent of retirees over 75 would suffer a cut in dividend income and he recommended the proposal not go through.
“In conclusion, the ASR urges committee members to consider the potential negative impacts of the proposed change in policy on ordinary Australians and the general economy,” he said.
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