The more modest change was first proposed by Scott Morrison when he was treasurer in 2016,but the former Coalition government dropped the policy on dividend imputation,which are tax credits paid to shareholders alongside dividends for tax already paid by companies.
The changes are far less bold thanthe abolition of franking credits proposed by Bill Shorten’s Labor opposition in 2019,which were fought by Morrison and former Liberal MP Tim Wilson.
But injecting the franking credit dispute into the political arena helps the Coalition build an argument that Labor has reneged on a pledge not to touch contentious tax policies after announcing asuperannuation tax rise last week. Labor rejects the Coalition’s comments,accusing it of a hysterical scare campaign.
Shadow treasurer Angus Taylor argued the move constituted a broken promise by Labor and put pressure onteal MPs,six of whom last year defeated Liberals in wealthy electorates where voters tend to have higher levels of shareholdings.
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“This is a test on where the teals stand when it comes to keeping election promises,” he said in a written statement.
Teal MPs Zoe Daniel (Goldstein),Sophie Scamps (Mackellar),Allegra Spender (Wentworth),and Kylea Tink (North Sydney) on Thursday voted for Coalition amendments to the Treasury tax law amendment bill that would have got rid of the franking-credit changes.