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 --

6,313 SIGNATURES
7,500 signatures

Will you sign?

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)
  • Sarah Cleggett
    signed 2019-02-23 08:03:50 +1100
    Let’s increase new start with the money saved by ending this outdated practice.
  • John King
    signed 2019-02-23 08:03:43 +1100
  • Barry Mcdonald
    signed 2019-02-23 08:03:38 +1100
  • Will Jones
    signed 2019-02-23 08:03:18 +1100
    On the personal level I can imagine this could be perceived as an ‘unfair’ change in the tax rules; however, at a macro level it is clear the system has to be changed to make it actually fair for all Australians – this is simply righting yet another Howard government wrong
  • Peter Hunter
    signed 2019-02-23 08:03:11 +1100
  • Daniel Webster
    signed 2019-02-23 08:03:10 +1100
  • Kurt Liffman
    signed 2019-02-23 08:03:01 +1100
  • Jane May
    signed 2019-02-23 08:03:00 +1100
    Now is the time for legislative change. Money that should be spent on public services.
  • Maryke Reis
    signed 2019-02-23 08:02:55 +1100
  • Ronald Jelleff
    signed 2019-02-23 08:02:40 +1100
  • Lualhati Hopkins
    signed 2019-02-23 08:02:33 +1100
  • Norman Sage
    signed 2019-02-23 08:02:23 +1100
  • Kevin Stokes
    signed 2019-02-23 08:02:08 +1100
  • Jeannette Martin
    signed 2019-02-23 08:01:59 +1100
  • Glenn Albrecht
    signed 2019-02-23 08:01:55 +1100
    Glenn Albrecht
  • Michael Myer
    @myer051 tweeted link to this page. 2019-02-23 08:01:39 +1100
    Sign the open letter: Close Unfair Tax Loopholes--End cash refunds for franking credits https://nb.tai.org.au/close_tax_loopholes?recruiter_id=168608
  • Cecily Cronin
    signed 2019-02-23 08:01:28 +1100
  • Elaine Sherwood
    signed 2019-02-23 08:01:27 +1100
  • John Hyde
    signed 2019-02-23 08:01:04 +1100
    John Hyde
  • 💧Urban Wronski
    @UrbanWronski tweeted link to this page. 2019-02-23 08:01:03 +1100
    Sign the open letter: Close Unfair Tax Loopholes--End cash refunds for franking credits https://nb.tai.org.au/close_tax_loopholes?recruiter_id=160427
  • Dianna Arton
    @diannaarton tweeted link to this page. 2019-02-23 08:00:59 +1100
    Sign the open letter: Close Unfair Tax Loopholes--End cash refunds for franking credits https://nb.tai.org.au/close_tax_loopholes?recruiter_id=247255
  • David Tyler
    signed 2019-02-23 08:00:36 +1100
    Collect tax from the wealthy tax evaders; increase welfare payments and age pensions. The vulnerable deserve better government support. Poor people spend their money, too, helping stimulate the national economy. Above all, a tax system needs to be fair, not full of loopholes and tilted towards the wealthy.
  • Dianna Arton
    signed 2019-02-23 08:00:35 +1100
  • Martin Carroll
    signed 2019-02-23 08:00:30 +1100
  • Michael Myer
    signed 2019-02-23 08:00:29 +1100
    Franking credit were a Labor initiative to stamp out double taxation of dividends. They were not devised to pay cash refunds to people who have a tax rebate below the company tax rate. This was a Costello initiative to buy the votes of the well off. It is a rort and must be removed. There are enough methods the well off have to minimize tax and this one is one too many.
  • Pascale Maitrepierre
    signed 2019-02-23 08:00:21 +1100
  • Andrew Kimmins
    signed 2019-02-23 08:00:10 +1100
    Andrew Kimmins
  • Tony Smith
    signed 2019-02-23 08:00:03 +1100
  • Robert & Tipawan King
    signed 2019-02-23 08:00:00 +1100
  • john sheeran
    signed 2019-02-23 07:59:43 +1100