The bias that many self-managed superannuation funds (SMSFs) have to Australian shares would almost certainly change if the Labor proposal to stop franking credit refunds got through. So say advisers deluged by calls from clients worried about their potential loss of income under the Labor plan.

Franking credits (to take account of company tax already paid on dividends before you get them) are an important component of the overall return for Australian shares, says Jonathan Philpot, partner with HLB Mann Judd Wealth Management. They're used to offset tax on other income and retirees paying little or no tax boost their annual income via unused franking credits being refunded by the Australian Taxation Office.