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You can find the current article at its original source at https://www.theguardian.com/australia-news/2019/feb/07/geoff-wilson-told-investors-labors-franking-credits-policy-easy-to-avoid

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Geoff Wilson told investors Labor's franking credits policy easy to avoid Geoff Wilson told investors Labor's franking credits policy easy to avoid
(about 4 hours later)
The fund manager who asked Tim Wilson to coordinate parliamentary committee hearings with his lobbying work once boasted to investors that the impost of Labor’s franking credit policy is trivially easy to avoid.The fund manager who asked Tim Wilson to coordinate parliamentary committee hearings with his lobbying work once boasted to investors that the impost of Labor’s franking credit policy is trivially easy to avoid.
Geoff Wilson – the chairman of Wilson Asset Management and a distant relative of Tim Wilson – when talking to concerned retirees claimed the reform would devastate their livelihoods but told his own investors that Labor’s revenue claims were “ludicrous” because they could simply restructure their affairs.Geoff Wilson – the chairman of Wilson Asset Management and a distant relative of Tim Wilson – when talking to concerned retirees claimed the reform would devastate their livelihoods but told his own investors that Labor’s revenue claims were “ludicrous” because they could simply restructure their affairs.
Labor has called for Tim Wilson to be sacked as chair of the house economics committee after revelations that Geoff Wilson asked the Liberal MP to set committee dates to align with meetings of shareholders who the fund manager then encouraged to attend and protest.Labor has called for Tim Wilson to be sacked as chair of the house economics committee after revelations that Geoff Wilson asked the Liberal MP to set committee dates to align with meetings of shareholders who the fund manager then encouraged to attend and protest.
PM says he won't sack Tim Wilson over use of franking credits inquiryPM says he won't sack Tim Wilson over use of franking credits inquiry
Tim Wilson has failed to declare at committee hearings that he has a shareholding in Wilson Asset Management through Wilson-Bolger Superannuation Pty Ltd, although he did declare it in his pecuniary interest register. Tim Wilson has failed to declare at committee hearings that he has a shareholding in two funds managed by Wilson Asset Management through Wilson-Bolger Superannuation Pty Ltd, although he did declare it in his pecuniary interest register.
He has also refused to rule out that Geoff Wilson has contributed funding for the stoptheretirementtax.com website, authorised by the Liberal MP, which encourages people to sign a petition and make a form submission to his own inquiry.He has also refused to rule out that Geoff Wilson has contributed funding for the stoptheretirementtax.com website, authorised by the Liberal MP, which encourages people to sign a petition and make a form submission to his own inquiry.
Labor is canvassing a number of options to force the government’s hand, including a binding House of Representatives resolution to remove Tim Wilson as chair, as the Coalition controls the numbers on the committee itself.Labor is canvassing a number of options to force the government’s hand, including a binding House of Representatives resolution to remove Tim Wilson as chair, as the Coalition controls the numbers on the committee itself.
The prime minister and Coalition members backed the embattled chair on Wednesday. The Greens MP and committee member Adam Bandt told Guardian Australia that Tim Wilson had “failed to declare a conflict of interest, turned the hearings into a farce and he should do the right thing and stand down”.The prime minister and Coalition members backed the embattled chair on Wednesday. The Greens MP and committee member Adam Bandt told Guardian Australia that Tim Wilson had “failed to declare a conflict of interest, turned the hearings into a farce and he should do the right thing and stand down”.
“There’s a higher standard expected of a committee chair,” Bandt said.“There’s a higher standard expected of a committee chair,” Bandt said.
The shadow attorney general, Mark Dreyfus, told Radio National on Wednesday that Wilson was “hopelessly compromised” because he “has been caught colluding with a relative whose company he owns shares in to manipulate processes of the parliament”.The shadow attorney general, Mark Dreyfus, told Radio National on Wednesday that Wilson was “hopelessly compromised” because he “has been caught colluding with a relative whose company he owns shares in to manipulate processes of the parliament”.
“He’s put on a committee hearing at a date and at a place that coincided with the company’s AGM, presumably so that many people who were at the AGM could flock along.”“He’s put on a committee hearing at a date and at a place that coincided with the company’s AGM, presumably so that many people who were at the AGM could flock along.”
Tim Wilson responded that he “absolutely worked with stakeholders to ensure Australians participated in the inquiry”.Tim Wilson responded that he “absolutely worked with stakeholders to ensure Australians participated in the inquiry”.
The government is determined not to let Labor deter it from prosecuting a campaign designed to turn retirees against the opposition but the connection with Geoff Wilson has blunted its attack.The government is determined not to let Labor deter it from prosecuting a campaign designed to turn retirees against the opposition but the connection with Geoff Wilson has blunted its attack.
At a shareholder presentation in November, Geoff Wilson said that “all you’ve got to do is change from a company structure to a trust structure” to avoid the impact of Labor’s policy, which scraps the cash refunds for excess imputation credits claimed by retirees and self-managed superannuation funds.At a shareholder presentation in November, Geoff Wilson said that “all you’ve got to do is change from a company structure to a trust structure” to avoid the impact of Labor’s policy, which scraps the cash refunds for excess imputation credits claimed by retirees and self-managed superannuation funds.
For the sake of trust in politics Tim Wilson must go – the problem is he can't see that | Katharine MurphyFor the sake of trust in politics Tim Wilson must go – the problem is he can't see that | Katharine Murphy
Geoff Wilson explained that entities managed by Wilson Asset Management could become trusts that wouldn’t pay two-thirds of dividends in tax, meaning they could pay out a higher actual dividend but it “wouldn’t be fully franked”.Geoff Wilson explained that entities managed by Wilson Asset Management could become trusts that wouldn’t pay two-thirds of dividends in tax, meaning they could pay out a higher actual dividend but it “wouldn’t be fully franked”.
He mocked Labor’s claims the measure would raise billions, labelling the revenue “a mirage” and likening it to the failed mining tax.He mocked Labor’s claims the measure would raise billions, labelling the revenue “a mirage” and likening it to the failed mining tax.
“Do they think we’re all stupid? Don’t they think we’re all going to change our behaviour?“Do they think we’re all stupid? Don’t they think we’re all going to change our behaviour?
“And the people that are getting the refunds … they’ll go into offshore equities or trust structures or change their structures like we can.”“And the people that are getting the refunds … they’ll go into offshore equities or trust structures or change their structures like we can.”
Geoff Wilson said it was “ludicrous” to think people would “stay there and just give them the $5-6bn”.Geoff Wilson said it was “ludicrous” to think people would “stay there and just give them the $5-6bn”.
“And everyone who sells that share, that has benefited from that franking credit will sell it to someone that might be on a higher tax rate who will utilise that franking credit.”“And everyone who sells that share, that has benefited from that franking credit will sell it to someone that might be on a higher tax rate who will utilise that franking credit.”
Geoff Wilson suggested the reforms were “zero sum” but also acknowledged some people would not restructure their affairs and “miss out and Labor will get [some revenue from] that”.Geoff Wilson suggested the reforms were “zero sum” but also acknowledged some people would not restructure their affairs and “miss out and Labor will get [some revenue from] that”.
Earlier in November, he told the Alliance for a Fairer Retirement summit that Labor’s franking credit was “a very real threat to the livelihood of hundreds of thousands of Australians”.Earlier in November, he told the Alliance for a Fairer Retirement summit that Labor’s franking credit was “a very real threat to the livelihood of hundreds of thousands of Australians”.
At times emotional, he read testimonials from affected retirees including a 68-year-old who receives $25,000 in franking credit refunds which she says pays her rent and to help support a disabled dependent adult child, also set to lose $800.At times emotional, he read testimonials from affected retirees including a 68-year-old who receives $25,000 in franking credit refunds which she says pays her rent and to help support a disabled dependent adult child, also set to lose $800.
Geoff Wilson concluded by suggesting Labor’s policies would have a “dramatic implication for equity and property markets resulting in the first recession in Australia for 27 years”.Geoff Wilson concluded by suggesting Labor’s policies would have a “dramatic implication for equity and property markets resulting in the first recession in Australia for 27 years”.
“Labor’s policies will not only significantly impact retirees and low-income earners, but they will destroy the aspirations of a generation of young Australians.”“Labor’s policies will not only significantly impact retirees and low-income earners, but they will destroy the aspirations of a generation of young Australians.”
Tim WilsonTim Wilson
Australian politicsAustralian politics
TaxTax
Australian economyAustralian economy
Liberal partyLiberal party
Labor partyLabor party
Adam BandtAdam Bandt
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