Investor claims that the Albanese government is out to destroy the franking credit system have been rebuffed by officials from Treasury and the Australian Taxation Office, who insist the changes will target a very small number of corporate transactions involving “contrived” tax arrangements.

A Senate inquiry this week heard from tax experts that equity capital raisings by Tabcorp and Harvey Norman were undertaken to distribute excess franking credits from their balance sheets and reduce the tax bills of investors such as superannuation funds.