Question: I have seen several questions with reference to the proposed Labor government’s franking credit changes. What are your thoughts on how retirees can consider and plan ahead for such an event, should Labor be elected?

Answer (By Paul Rickard): 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:

1. The ALP hasn’t been elected yet;
2. 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
3. I think it is quite likely that the policy will be further amended in the coming months.

Question: I have a small holding of Iron Mountain shares in my SMSF. I have just had notification that the shares are to be de-listed on the Australian Stock Exchange (ASX) and converted to Common Shares on the New York Stock Exchange (NYSE). Should I consider selling the shares prior to the de-listing or hang on and convert to NYSE?

Answer (By Paul Rickard): If you only have a small holding, then:

1. I would sell on the ASX prior to the delisting date of 13 August; or
2. Elect to use the share sale facility they are creating, which will see the shares sold on the New York Stock Exchange in the subsequent months.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.