We welcome the opportunity to make a submission to the Standing Committee on Economics inquiry into the implications of the removal of refundable franking credits. Our submission focuses on the principles for sensible tax reform, analysis of removing refundable franking credits, its impact and alternative tax policies.

We have analysed the policy against principles of no double taxation, fairness, product neutrality and simplicity and find that the removal of refundable franking credits in the form proposed by Labor would fail on all counts.