Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697633397838.pdf (Australia)
Dear Sir/Madam I am a Self-Funded retiree and feel deliberately targeted.

At no stage do Industry funds or Parliamentary Superfunds, appear to suffer as they are always in â€œ an accumulation â€œ stage and need every Franking credit they can lay their hands-on.

The N A Brown Superannuation Fund currently has around 85% of its Investments held in managed Funds.

Currently , around 17% of the income from these Funds is derived from Refundable Franking Credits.
In the future , this may increase , depending on income received from the managed funds.

If the proposed policy does proceed this would see investors favour Trusts and interest income over franked dividends.

SMSFâ€™sin Pension mode, will be hardest hit by the proposed changes as they have NO TAX LIABILITIY TO OFFSET and therefore will lose all of the benefits of franking credits .

This will substantially reduce the total yield on this form of investment.
Retirees with SMSFâ€™s will change their superannuation arrangements, and this will have a flow on effects.

Self- Funded Retirees have already been hit with two major changes in the last two years, first to the Age Pension Assets Test then the to the Amount allowed to be held in Pension Mode Super.
The loss of franking credits would be yet another hit to the income and lifestyle of many people who planned their retirement on the rules that were current at the time when they retired, believing the goal posts would not be moved.

If the policy does proceed, it should be â€œ Grandfatheredâ€ â€˜ similarly as the Parliamentary Fund was, as all existing SMSFâ€™s have been structured on the basis of excess franking credits being refunded to the fund.
Having self-funded retirement income requires long term planning and stability.

Many SMSF members have structured their investments and have drawn a self-managed pension taking into account that since the pensions commenced, they will receive a cash refund for all franking credits.
While the ALP intends to exempt Part and Full pensioners( Age Pension) from its proposed changes, this does not take inti account many other Australians who have diligently saved for and depend on their self-funded retirement income.

Give this careful consideration please.

Thank you, Patricia Brown.

Inquiry into the implications of removing refundable franking creditsSubmission 991