I agree industry superannuation funds would not be eligible for a tax refund under Labor’s policy. However, most large funds pay net tax. Therefore they would be able to distribute franking credits to all members whether they are in accumulation or pension mode. Accordingly SMSF pension members should seriously consider transferring their Australian equity allocation to a tax paying industry / retail fund if Labor wins the next election in my opinion. Do you agree ?
A: I agree that as taxpayers, industry super funds will be able to make better use of the franking credits and reduce their overall tax bill.
I just don’t know how they will distribute this benefit – and so will a member in pension phase, whose tax rate is already 0%, get an additional benefit? Or will the additional benefits go to members in the accumulation phase?
A question best answered by the industry super funds.