Taxation Law and Practice
Semester 1, 2019
Must be lodged via turnitin
Maximum words 2,500 words (plus or minus 10%)
The topic for the Tax Policy research assignment is: DIVIDEND IMPUTATION REFORM
Below is a brief outline of the Labour Party’s policy proposal regarding Dividend Imputation reform taken from the following websites:
“The Australian Labor Party (ALP) has announced that if it wins at the next election it will reform the dividend imputation credit system, removing cash refunds for excess dividend imputation credits, also known as franking credits.
They have announced they will not change the system of dividend imputation, but rather they will remove the ability to claim excess imputation credits in cash from the Australian Taxation Office (ATO). The change will start from 1 July 2019 and won’t apply to cash refunds to charities and not-for-profit institutions (like universities). In a later statement, the ALP updated their proposal to also allow Centrelink pensioners (full and part) and allowance recipients to continue to receive cash refunds. This will also extend to self-managed superannuation funds (SMSFs) that had at least one pensioner/allowance recipient before 28 March 2018.
The savings to the Budget are estimated to be $10.7 billion over 2019/20 and 2020/21, and
$55.7 billion over ten years1. The ALP has said it will use these savings to fund personal tax
cuts and social policy expenditure.”
In relation to the above tax policy issue, answer the following questions.
1. Why is this tax policy issue significant? (maximum 500 words)
2. Who are the key stakeholders and how does this policy affect them? (maximum 500 words)
3. Who are the winners and losers in relation to this tax policy, i.e. what are its pros and cons from the point of view of the stakeholders identified in relation to question 2? (maximum 500 words)
4. Assuming that you work for an accounting/tax practice, what would be implication for your firm and its clients if the tax policy becomes law? (maximum 500 words)
5. Assuming that you work for the Australian Tax Office, what impact would the tax policy have on compliance work of the ATO? (maximum 500 words)
Requirements and expectations
You must provide a critical analysis in response to question 2 and 3. Simply stating what the policy is and how it might work will result in the requirements of this assignment not being met.
It is also not sufficient to quote the work/opinions of other authors. You must analyse the issues raised by the chosen tax policy and provide your thoughts/analysis based on what you have read, and learnt from the course.
You are required to show the word count for each section. Total word limit should not exceed 1400 words.
You must use the template Word document provided on Canvas.
Full and accurate references should be provided for any sources that you cite within the body of the assignment. Which referencing system you use (i.e. Harvard, etc) is not important as long as you are consistent.
Please refer to the Rubric for the grading schema.
If you have any questions, please about the requirements of this assignment ask your lecturer asap.