Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697633056637.pdf (Australia)
Submission to Inquiry into the implications of removing refundable franking credits My wife and I are self-funded retirees in our late 60s.

Our combined income of $68,000 p.a.

comprises $60,000 pensions from our SMSF, plus about $8,000 from investments outside super.

Franking credits make up approximately 20% of our total combined income.

I acknowledge that there may be sound economic reasons for removing the refunds where no tax is payable.
However, those refunds were in place when we and many others made the decision to retire.

Had they not been, we would have continued working for another few years.

Returning to work is not an option for us now.

If we lose our franking credit refunds, it is likely that we will need to draw down on capital and so end up on the Age Pension.

I imagine there are many other self-funded retirees in the same situation.
Hence the benefit to the government from removing refunds is likely to be largely offset by higher Age Pension payments.

I submit that in the interests of fairness, if this change is introduced, it should either be granfathered to protect those who have already retired, or have a dollar cap on refunds such that those of us on modest incomes would continue to receive them.

Geoff Mackay Inquiry into the implications of removing refundable franking creditsSubmission 1028