For those that don’t know, last week’s Super Saturday by-election was won by the ALP. The election result wasn’t all that relevant, it just means its business as usual for Government. Nothing has changed. Sure ALP managed to hang onto four from four seats that were up for contest, but these seats were previously held by the ALP prior to the election anyway. The ALP won Braddon, Longman, Perth and Fremantle and crossbencher Rebekha Sharkie defeated Liberal Georgina Downer in Mayo. Had the Coalition won any seats, Bill Shorten would have been in real trouble and history would have been made. But it wasn’t to be. What does it mean for investors? Labor’s plan to ditch cash refunds on dividend imputation credits attracted fierce opposition from the SMSF and investment community. Their plan is to change the dividend franking system so that everyone that uses franking credits to offset taxable income, will no longer be able to do so. Imputation credits are a tax refund owing to shareholders of companies where up to 30% tax has already been paid by the company. Investors that rely on this cash flow will be most at risk. The Labor Party underestimated the opposition to its franking credits policy. That forced it bring out the ‘Pensioner Guarantee’ exception. This effectively exempts those on welfare pensions from the loss of franking credit refunds. Labor says most of the franking credits go to high-wealth individuals. Their justification for the policy is that they believe it isn’t fair to spend $8bn a year on a tax loophole that mainly benefits millionaires who don’t pay income tax. On the flip side, Malcolm Turnbull is under pressure to enact policy changes to his proposed company tax cuts, including the big banks. The PM lost badly in last weekend’s Super Saturday by-election. It’s prompted a rethink of his flagship company tax cut policy. Treasurer Scott Morrison says the government will go ahead with its company tax cut plans. These cuts will struggle to get through the Senate. The government wants to cut the tax…

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