CLOSE LOOPHOLES
J. HILTON (RCB, Oct 17) takes Labor Bowman candidate Tom Baster to task because he supports the removal of the cash component of the dividend imputation scheme. How shallow is this? In 2000 Treasurer Peter Costello made a change that turned dividend imputation into a scam. To realise the problem with Costello’s reforms, it’s helpful to understand who benefits most from dividend imputation.
Everyone who owns shares and gets a dividend gets a tax benefit but for most people it is not big. Australia Institute modelling found that 75 percent of the dividend imputation benefit goes to the richest 10 percent of households.
Most who benefit are wealthy retirees who manage their own super funds. Retirees living off their super do not actually pay tax.
So how can they use franking credits to reduce tax liability if it’s already zero? Instead of just using franking credits to reduce the tax owed, Costello allowed people to cash in credits. So not only are investors able to minimise tax, they get given extra money, even if they had paid no tax that year.
Labor wants to keep most of the dividend imputation scheme intact but scrap the bit that allows for cash refunds. If you receive a franking credit, you can still use that to minimise your tax liability but you can no longer trade that credit for cash.
This seems fair. As Labor leader Bill Shorten said: “Every dollar that slips through these loopholes is a dollar that cannot be invested in the Australian people… Every dollar allocated to tidy little arrangements for people who already have millions of dollars is a dollar that can’t be used to repair the budget and bring Australia back to surplus.”
- R. Cornwill, Cleveland
REFUND ON GOVT
I CANNOT believe it. We are just so lucky, aren’t we? We are able to get 10c each for all our empty bottles and cans.
While visiting my supermarket I saw a sign advising us that all bottled and canned drinks will rise in price by – yes – 10c.
I cannot and will never understand the greed of multi-nationals and there are the select few of our supermarkets who do not even pay income tax in Australia and they are being allowed to get away with it. We need a government who will stand up for us and the whole of the country.
- B. Geary, Redlands
BRIDGE A BOTTLENECK
THE upgrade of Green Camp Road (RCB, Oct 17) is pleasing to see and the comments made by Brisbane City Council deputy mayor Adrian Schrinner on the upgrade increasing safety and capacity are true.
However, he and federal MP Andrew Laming have failed to mention the bottleneck which must occur at the EGW Wood Bridge on Rickertt Road, since it accommodates only a single lane each way.
Many of the 30,000 vehicles which Brisbane’s Cr Brian Murphy states use Green Camp Road daily would travel not from the Capalaba end, thereby avoiding the bridge and its accompanying bottleneck, but from the Redland end of Rickertt Road, from suburbs like Thorneside, Birkdale and Wellington Point. Their drivers and passengers will face this bottleneck before they reach the four-lane section of Green Camp Road.
Is one of the benefits for Brisbane and Redland residents mentioned by Mr Laming this bottleneck? Will the Green Camp Road upgrade improve Rickertt’s ranking of fourth in RACQ’s survey of the most unroadworthy roads in Queensland? Are there plans for the EGW Wood Bridge to be upgraded?
- S. Davis, Wellington Point
TRAFFIC HAZARD
SANDRA Davis (RCB, Oct 3) highlighted the traffic hazard at the intersection of Brewer Street and Old Cleveland Road, Capalaba, the access to CapellaBay Aged Care Unit.
I was in a collision there and I am thankful there was not a more serious outcome.
Police agree with the installation of lights at this location as do I. How long must we wait for this before a tragedy occurs? I would like to thank the police, ambulance and passers-by who attended my accident for their sympathy and help.
- R. Thomason, Cleveland
BANKS SHOULD HELP
PENSIONERS are finding it terribly hard as many bank branches close.
Banks should send a fortnightly statement, showing the pension has been lodged and withdrawals made. Pensioners should receive a debit card and be told how to use it at any Coles, Woolworths or IGA stores with no withdrawal fee.
It is terrible how elderly are ignored because they wish only to go to their bank, find balances and withdraw money. So many have no computer, are far from family and are too far from a branch.
- D. Swain, Wellington Point
IDYLLIC PLACE
ONE time I took a group of college students to Minjerribah and one of them commented that she could see an Indigenous man with a spear walking through the shallows looking for a meal. I replied that he was doing what his family has been doing for thousands of years and the place is still beautiful. During the day we snorkelled and at night we saw koalas at Amity Point. Let's hope greed does not ruin this idyllic place.
- D. Tafe, Cleveland
TEENAGERS OK
I WOULD like to thank the three teenage girls who helped me on October 11. I was crossing Queen Street, Cleveland when I fell. The girls helped me up, collected my items and stayed with me until I had stopped shaking. Much is said about the younger generation but on this day they did not hesitate to come forward. They deserve my heartfelt thanks.
- J. Winton, Cleveland