Bill Shorten has announced that if the Labor Party wins government at the next Federal election franking credits will not be refundable from 1 July 2019.

Currently, the dividend imputation system operates so that where taxpayers a taxpayer's franking credits exceed the tax liability for the year, the taxpayer is entitled to a cash refund of the excess credits.

Removing refundable franking credits is just one of a number of significant changes that a Shorten Labor government would make to the Australian tax system, if elected. It is critical that advisors are across these proposed changes and consider what steps can be put in place, now (if any) to minimise the impact of these foreshadowed changes on clients.