Seniors against cut in dividend imputation to boost Govt revenue
National Seniors is opposed to any plans by the Government to slash the company tax rate in order to claw back revenue.
Senior policy advisor Paul Versteege said abolishing or reducing dividend imputation would affect already struggling retirees.
“Dividend imputation is about ensuring that income doesn’t get taxed twice; once when the company declares a profit and again when that profit is distributed to shareholders.”
National Seniors is calling on the Government to rule out changes to dividend imputation for its May 2009 budget and for the Henry Tax Review.
Versteeg said superannuation funds were heavily invested in shares and received much of their returns through dividends.
“Those returns are currently taxed at 15% but abolishing dividend imputation would increase that rate to 30% through the back door.
“Abolishing dividend imputation would reduce retirement incomes for a great many people and result in new imposts on Government revenue through higher age pension payments,” he said.
