Taxpayers foot bill for roadshow attacking Labor's franking credit policy

Retirees unhappy with Labor's plan to remove cash payments for excess franking credits are free to vote for another party, shadow treasurer Chris Bowen has declared, as the opposition doubles down on the policy in the face of criticism from the government. 

With no formal witnesses scheduled for any of the 12 special economics committee hearings to be held across the country before May, Coalition MPs appear set to continue to use the meetings to rally against the Labor policy. At one recent hearing an MP went so far as to hand out Liberal Party membership forms to the audience.

The taxpayer-funded committee hearings in Dee Why in Sydney and Townsville and Alexandra Headland in Queensland proved flash points for retirees venting their anger at the $5 billion-a-year policy.

A hearing of the Franking Credit Inquiry in Dee Why, Sydney, in November.

The committee has heard evidence from hundreds of people eager to share their concerns about what a change in policy could mean for their retirement incomes.

A forecast of travel expenses for the next 12 meetings obtained by The Sydney Morning Herald and The Age shows taxpayers will foot the $160,000 bill for venue hire, car hire, travel allowances for MPs and the secretariat. This is on top of the cost of holding three meetings in Sydney and Melbourne.

At Wednesday's hearing, Queensland Liberal MP Andrew Wallace used his testimony to call for retirees angry at the policy to join the Liberal Party before handing out application forms.

One government MP said the committee was "sharpening the message" to attack Labor over its policy, which will strip tax refunds from investors and retirees.

No witnesses have been listed for any of the meetings since the last one in Dee Why in November.

A breakdown of expenses shows taxpayers paid approximately $5000 to hire the Pandora Room at the Hotel Grand Chancellor in Townsville on Tuesday, with similar estimates for the Bluff Function room at the surf club on Wednesday on top of thousands of dollars in flights and travel allowances for MPs and staff. The expenses are expected to remain consistent for next dozen hearings.

Nationals MP George Christensen Credit: Alex Ellinghausen

In Townsville, a full room of retirees and shareholders heard from Nationals MP George Christensen. He was followed by Liberal MPs Ted O'Brien and Mr Wallace on Wednesday. Mr Wallace handed Liberal Party applications to the more than 50 members of the public who attended the Alexandra Headland Surf Live Saving Club.

"I’ve got applications here," he told the audience.

"If you want to fight this and ensure this does not become law, I would encourage everybody here to join the Liberal Party and take the fight up to Labor."

Mr Bowen said he is prepared to wear any voter backlash from the policy.

"I say to your listeners, if they feel very strongly about this, if they feel that this is something which should impact on their vote, they are of course perfectly entitled to vote against us," he told ABC radio on Wednesday.

Prime Minister Scott Morrison (left), flanked by the Liberal Member for Fisher Andrew Wallace. Credit: AAP

Committee chair, Liberal MP Tim Wilson has also launched the Stop the Retirement Tax website to go with the national tour.

A spokesman for Mr Wilson said taxpayers had not contributed funding to the website.

The committee has received more than 1000 submissions so far.

Mr Thistlethwaite, the comittee's deputy chair, said the inquiry was "an outrageous abuse of the Parliament's committee process".

"Liberal MPs are using taxpayer dollars to run around the country encouraging people to do their part and undermine Labor policy," he said.

"These hearings are meant to be for feedback from the members of the public, not an opportunity for MPs to abuse the parliamentary process and grandstand."

Committee member and Liberal MP Jason Falinski, who was not on the Queensland leg of the tour, sought to distance himself from Mr Wallace's actions but backed the unusual nature of the inquiry into an opposition policy.

"If it's happened it shouldn't," he said. "Up until now, I haven't seen it as being political. Compared to other inquiries that I have trudged through this has been quite illuminating."

Treasurer Josh Frydenberg did not respond to questions about whether political campaigning or taxpayer funding was appropriate. "It’s time for Labor to stop dismissing and disrespecting Australian retirees and listen to what they have to say," he said.

Mr Wallace was contacted for comment.