Unfortunately, since its announcement, there has been much misinformation about Labor’s policy to end cash refunds for imputation credits. This policy will only affect people who receive cash tax refunds i.e. taxpayer funds after they have paid no income tax in that financial year.

It is important to note that under Labor’s proposed policy:-
• No one will pay a single cent more tax;
• No one will lose a single cent from their superannuation contributions;
• No one will lose a single cent from their pension;
• No one will lose a single cent from their share dividends;
• It is not retrospective – it will only apply from 1 July 2019; and
• Everyone who gets share dividends can still use the system to reduce their tax bill but they won’t be able to get a tax refund if they have paid no income tax.

Imputation credits were implemented by the Hawke Government in 1987. The purpose was to stop tax being paid twice on company profits: once by the company and again by the shareholder on the dividends. Labor continues to support this policy and it won’t change.

The problem emerged when the Howard Government changed the rules to allow shareholders who paid no tax to get a cash refund from imputation credits. This has caused a fiscal time bomb that we can no longer afford. Within the next few years, it will be costing $8 billion a year – more than we spend on public schools or child care, and three times what we spend on the Australian Federal Police.

This is an unaffordable tax concession that 92 per cent of Australians do not use.

Overwhelmingly the benefits of this concession go to wealthy Australians that are using self-managed superannuation funds. Half of the cash refunds go to self-managed superannuation funds with balances of more than $2.4 million. Some funds are paying no tax and collecting a $2.5 million cheque from the tax office each year.

I understand that there will be a small number of people who are affected by this policy that do not fit into the categories mentioned above. The policy has been put forward well in advance of an election so that people can understand the impact on their individual circumstances and will have time to adjust their investments to negate any change. Labor will always look after pensioners and, no doubt, Bill Shorten and Chris Bowen will have more to say about that down the track.

If you are a Moreton resident and would like to talk to me about this policy please call my office on (07) 3344 2622 and I will return your call as soon as I can.

Graham Perrett – Federal Member for Moreton

The Palaszczuk Labor Government will spend $97 million over three years to help Queensland schools cut their combined power bill by about 20 percent.

Premier Annastacia Palaszczuk and Education Minister Grace Grace detailed the Advancing Clean Energy Schools, or ACES program, will deliver energy efficiency and big savings for about 800 state schools while visiting Bremer State High School in Ipswich.

“The ACES, or Advancing Clean Energy Schools program will save our schools an estimated $10.2 million a year,” the Premier said.

“That’s a great saving for schools as well as a fantastic contribution to our 50% renewable energy target by 2030.

“Our state schools are among the government’s largest energy users, with an annual energy bill of more than $50 million.

“This program will be a game changer and the reduced environmental impact will be significant.

“By reducing costs and reinvesting savings into the program, we can ensure state schools across Queensland have more sustainable energy use into the future.

“The first phase of the program this year will include up to 30 schools in each of the Department of Education’s seven regions, so the benefits will be shared throughout the state.”

The program will see an investment of $40 million in solar photovoltaic systems and $57 million on making schools more energy efficient.

Minister Grace said the Bremer State High School would be one of the first schools to benefit and an audit would be carried out to determine the best ways to help it to reduce its energy costs.

“Currently Bremer spends about $250,000 a year on electricity, with $100,000 of that in network charges so that gives an indication of the impact this initiative will have over time.

“It is a school where clean energy and environmentally friendly measures are already in use.

“A small 4.1kW solar system on the roof currently supplies about 0.7% of electricity consumption and there are large areas of synthetic grass around the school to save on watering and fuel costs for mowing.

“And there are underground water tanks used for flushing toilets to save on water use.

“We know that many of our schools have great environmental programs and do what they can to save energy and water and this program will make a massive contribution,” she said.

“Renewable energy technology has developed significantly and we want to take advantage of the opportunities that now exist for our state schools to make energy savings.”