Hi Paul,
I have seen several Q&A with reference to the proposed Labor governments franking credits affecting many retirees especially those with smsf and in pension mode. What are thoughts on how such retirees can consider and plan ahead for such an event should Labour be ejected which is likely at this stage. Closer to the ejection, I would expect FF shares may be sold off for other options, hence maybe taking some action prior could help capital loses.
Thank you
Regards
A: Thanks for the question.
Closer to the election, we might see a little bit of downward pressure on some of the “high yielders”, but remember, the proposed change only impacts some shareholders.
My advice would be to take no action for now because:
- The ALP hasn’t been elected yet;
- There is no guarantee that if elected, they could get the legislation through Parliament (very unlikely that they and the Greens will have a majority in the Senate); and
- I think it is quite likely that the policy will be further amended in the coming months.
Regards
