‘Not much of a future’ for franking credits policy: Labor

Labor’s franking credits stance looms as the first major policy Anthony Albanese could drop.

Labor frontbencher Joel Fitzgibbon. Picture: Kym Smith

Labor frontbencher Joel Fitzgibbon says he doubts the party’s pre-election franking credits crackdown has “much of a future”, the measure looming as the first major policy Anthony Albanese could dump.

READ MORE: Anthony Albanese says voters resented Bill Shorten’s election agenda | Weak, risky, unpopular: the Shorten verdict | Labor’s election epiphany | ‘Dud combination’ sank voter appeal | Bill’s ambition is still burning | Keating warns Labor over worker security

The opposition resources spokesman singled out the dividend imputation policy as one that will likely be dropped under the new leadership.

“I doubt franking credits have much of a future, in the Labor Party,” Mr Fitzgibbon told the ABC.

“But all of our policies will be reviewed and they’ll be reviewed through a prism of Labor’s key values and they are equality of opportunity, economic security — that’s what’s important to people.

“We’ve got to focus again on our blue-collar base, and assuring our base that we support manufacturing, the mining industry, the energy sector and we have a plan to both give those sectors a future and those who work within them, a future.”

At his National Press Club address on Friday, Mr Albanese said the ban on cash refunds for franking credits was hard to sell from opposition.

“It’s obvious that there was resentment towards some of our 2019 election policies including franking credits. While the call on the budget of franking credit arrangements is large, many small investors felt blindsided and it opened up a scare campaign,” he said.

Mr Albanese also pointed to a conversation he had with a pensioner during the campaign who thought she would be hit by the policy, despite not owning shares.

“That was the problem. When you’ve got to explain dividend imputation and franking credits from opposition, tough ask.

“And it was a tough ask. It’s identified. I’ve spoken of it before. We’ll make announcements at appropriate times.”

Labor frontbencher Michelle Rowland said the party would have lower spending commitments at the next election.

“Labor governments are elected when they get the basics right,” Ms Rowland told Sky News.

“When they demonstrate that we can manage the economy well, when we can demonstrate that we have an agenda for productivity and economic growth.

“Once you get those basics right it is essentially a licence from the electorate to be able to do any other number of things that fit in with Labor values as well.”