Expert Insights

The ALP’s proposal to ditch franking credit cash rebates evoked an emotional response from self-funded retirees, sparking substantial analysis and debate on the issue. While there have been few developments to the policy proposal since it was announced in March Livewire spoke to Dr Don Hamson from Plato Investment Management to get his take on practical steps investors can consider ahead of any potential changes. He reminds investors that the policy is very divisive and there may never see the light,

“I think we need to have a wait and see approach because I think there’s a reasonable chance it will never see the light of day ... or that it may be further watered down and we’d have to reevaluate what finally comes out.”

In this full video Hamson outlines the practical steps he has considered should the changes come into effect.


Interested to hear more on income?

Plato’s philosophy is centred on the belief that the market is a complex, adaptive system and is therefore inefficient. Find out more


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I am stunned to hear the Dr's point of view; it is going to hurt a few! There are many comments around on this topic but, perhaps Dr. Hamson needs to enquire further. The ALP is doing this to discourage individuals from leaving industry funds upon retirement because, as he points out, within an industry fund the benefit of franking credits will be retained whereas, in a SMSF in retirement phase, it will be lost. We implemented the 40/60 several years ago and franking credits are still an important part of the revenue strategy within our SMSF, as my wife and I negotiate our well earned Golden Years. Sorry Dr, I don't buy your simplistic, she'll be right attitude.