Close Unfair Tax Loopholes: End cash refunds for franking credits

The complexity of the Australian tax system hides many loopholes, one of the most unfair is the fact that some of Australia’s wealthiest citizens pay negative tax. The tax office actually pays money to people who have paid no tax themselves, and these people are some of the wealthiest in the country. 

It's time this perverse tax loophole was closed.

Only by closing unfair tax loopholes can Australia implement progressive reforms like strengthening the social safety net, building social housing, investing in schools and universities, addressing climate change and improving health care.

 

We, the undersigned--

Call upon the Australian Parliament to guarantee that the tax system treats all Australians fairly and raises the revenue our community needs to fund vital services. Low income workers should not pay more tax than millionaires.

We call upon the Australian Parliament to abolish the practice of providing cash refunds for unused franking credits to people who pay zero tax, introduced by the Howard Government in 2000.

The policy mainly benefits the most wealthy of Australians and no other country does this. Currently, the Federal Government spends more on refunding franking credits than it does on funding public schools.

It's time to end this tax bonus for those who pay no tax.

ADD YOUR NAME --

6,291 SIGNATURES
7,500 signatures

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The Australia Institute research:

  1. Australia is a low taxing country
  2. Australia is the only country in the world to refund excess franking credits to people who do not pay tax (2015, 2018)
  • Fiona Conolly
    signed 2019-02-23 08:12:08 +1100
    Fiona Conolly
  • Dennis Sherwell
    signed 2019-02-23 08:11:57 +1100
    Stop giving ordinary people’s taxes back into the pockets of the wealthy. I would support a small cap of $2/3,000 for people on genuinely low gross incomes if that’s what’s needed to get support to remove this distortion from the landscape.
  • Glen Smith
    signed 2019-02-23 08:11:45 +1100
    Glen Smith
  • Lachlan Garland
    signed 2019-02-23 08:11:38 +1100
    I didn’t realise how little tax Aust collects, no wonder place is a basket case
  • Rex Manson
    signed 2019-02-23 08:11:32 +1100
  • Russell Eaton
    signed 2019-02-23 08:11:07 +1100
  • Helen MacLean
    signed 2019-02-23 08:10:51 +1100
  • Richard McIntyre
    signed 2019-02-23 08:10:33 +1100
    Richard McIntyre
  • Keith McKenry
    signed 2019-02-23 08:10:24 +1100
  • Peter Mahony
    signed 2019-02-23 08:10:01 +1100
  • Brian Bycroft
    signed 2019-02-23 08:09:36 +1100
  • Stuart Godfrey
    signed 2019-02-23 08:09:36 +1100
    Stuart Godfrey
  • Birgit Graefner
    signed 2019-02-23 08:09:20 +1100
    Birgit Graefner-Sturmberg
  • Inez Ryan
    signed 2019-02-23 08:09:07 +1100
    Inez Ryan
  • Sj Chapman
    signed 2019-02-23 08:09:06 +1100
  • Malcolm Johnson
    signed 2019-02-23 08:09:02 +1100
  • Meredith Edwards
    signed 2019-02-23 08:09:01 +1100
  • Robyn Vincent
    signed 2019-02-23 08:08:49 +1100
    I agree that franking credit refunds are bad tax policy.
  • Pru Peschar
    signed 2019-02-23 08:08:45 +1100
  • Anna Pitchers
    signed 2019-02-23 08:08:26 +1100
  • Jim Falk
    signed 2019-02-23 08:08:25 +1100
  • Barbara J Fraser PhD
    signed 2019-02-23 08:08:25 +1100
    As a self-funded retiree receiving this “refund”, my letter urging this important reform was printed in The Age on 5 February!
  • Janis Huggett
    signed 2019-02-23 08:08:17 +1100
  • Roger Wong
    signed 2019-02-23 08:08:14 +1100
  • Anthony Dwyer
    signed 2019-02-23 08:08:07 +1100
  • Hazen Cleary
    signed 2019-02-23 08:07:47 +1100
  • Julie Mcgowan
    signed 2019-02-23 08:07:37 +1100
    I have a wealthy self funded retiree friend who receives $30,000 a year in cash with this government sanctioned rort whilst paying no tax. This is about $7000 than the aged pension I receive. As another tax paying friend said to me, they don’t begrudge paying tax, but hate when the government waste their’s and others taxes, giving the wealthy money they certainly don’t need. It’s gross!
  • Marianne Ehrhardt
    signed 2019-02-23 08:07:28 +1100
    Marianne M.H.E. Ehrhardt
  • Mairi (Mairi)
    signed 2019-02-23 08:07:18 +1100
    We must always work towards a more equitable society if we want a better Australia.
  • Steven Krikstolaitis
    signed 2019-02-23 08:06:54 +1100