Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Hansard source

Treasury has suggested that there's no present issue with companies misusing franking credits under schedule 5, following the introduction of the taxpayer alerts in 2015 targeting perceived misbehaviour. I use the example of the UK's advance corporation tax again, which has shown the unintended consequences of tinkering with franking credit arrangements and that those consequences could be far reaching. Could you please explain again the rationale for the changes and why the proposed legislation goes beyond the points outlined in the 2015 taxpayer alert, which, if the Treasury's evidence is to be accepted, effectively stopped incidences of this behaviour?