General Discussions

[LP]

You need to means test franking credits and cap them for anyone earning over 80-100k.
If you scrap them completely then you will have a lot of self funded retirees qualifying for the pension, dropping their private health insurance and getting health care cards etc.
You want to deny the Twiggy Forests etc who earn millions in dividends but not punish the little bloke who earns 40k and uses those franking credits for his health insurance etc and who will become a burden on the pension  and health care system.

I agree, but I think the thresholds should be geared to the average wage, so that it scales automatically as the economic environment changes. Also, as part of this I think the Feds need to look at issues like provisional tax. The problem I see is that the sole trader types and tradies can dabble in the share market and have massively variable income from year to year but not be earning that much on average. So if they have a very good year and the thresholds are set too low you can really punish their earnings. Alternatively maybe make these calculations based on an average over a few years.

What do you do when someone like Packer or Rinehart declare an income of $35K, while their wealth doubles and the number of people they employ plummets?