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Loss of franking credits will lead to $100b SMSF exodus

Joanna Mather
Joanna MatherWealth editor

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At least $100 billion will pour out of self-managed superannuation funds and into retail and industry funds in the first year of Labor's franking credit crackdown, according to analysis by asset management firm Realm Investment House.

If Labor succeeds in making franking credits non-refundable, retirees will flee SMSFs in a bid to get maximum value from their shareholdings, Realm risk committee chairman Ken Liow said.

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Joanna Mather joined the AFR as an education reporter in 2008. She spent four years in the Canberra press gallery before becoming superannuation reporter in 2016, deputy news director in 2021 and wealth editor in 2023. Connect with Joanna on Twitter. Email Joanna at jmather@afr.com

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    Original URL: https://www.afr.com/policy/tax-and-super/loss-of-franking-credits-will-lead-to-100b-smsf-exodus-20190510-p51m18