Case Study 1: Jean is retired with a large self-managed super fund. She receives $29,810 in dividends from bank shares and $130,000 from other assets. As the fund is in the pension phase, and pays $0 tax. Jean is currently entitled to a $12,775 rebate. Under Labor, Jean would lose that.
Now, let’s just get something straight right up front. Jean only ever got this cash back in the first place because Howard and Costello wanted to sure up her vote in case she was tempted by racism to vote for Pauline Hanson. This is not a usual way for governments to manage shareholders and company tax – Australia is only one of four countries that offers such a scheme and the original dividend imputation policy designed by the Keating government had no such rort, I mean perk. I meant rort actually.
But, now that we know about Jean, who ‘would lose that’, I think this is the perfect time for us to talk about Jean. We should thank the Herald Sun for kicking off this healthy discussion.
Let’s start at the beginning. We knew the Liberals, in concert with their media arm, the Murdoch press, would launch a propaganda scare campaign against Labor’s very sensible, fiscally responsible, wealth-inequality battling policy to no longer give self-funded retirees cash they don’t need. How did we know? Because that’s what the Liberals and their media arm, the Murdoch press, exist to do. The sky is falling. Everyone is ruined. The economy will rise up like an angry god and smite us all for hurting those who have bestowed trickle-down wealth upon us. And so on and so forth.
I must admit, it’s a sad turn of events that the likes of Leigh Sales on ABC’s 730 is also playing this game, seeking out Lyle-we need those dividends to live-Essery, to show their sad sad faces on TV, to tell Labor how naughty and mean they are for hurting Jean and Lyle, who did nothing to deserve this. But that’s the thing. Jean and Lyle did do nothing to deserve this magical cash-back bribe from Howard and Costello, other than possibly considering voting for Pauline Hanson, and no one should be rewarded for that dirty idea.
But, now that the likes of Jean, and the ABC’s Lyle, are all over the media sharing their suffering, and being given a national audience to urge people not to even consider voting for the possibly-Communist Labor Party who want to spend Jean and Lyle’s cash-back on evil things like schools, healthcare, income tax cuts for workers who haven’t had a pay rise in years, and have the highest house prices and power bills of any generation ever, I have three questions:
1) Why am I meant to be sympathetic to Jean and her poor share portfolio, but I’m not being asked to be sympathetic to people with disabilities and the unemployed who are constantly being bullied and threatened by the Turnbull government who is working as hard as they can to pull their social safety net out from under them, leaving them destitute and possibly homeless? Could they possibly move in with Jean?
2) Related to the above, why is cutting welfare spending framed as a perfectly legitimate government policy, responsible in fact, in order to do the ‘heavy lifting’ job of ‘budget repair’ in response to a supposed ‘debt and deficit disaster’, but saving billions by not giving people with share portfolios most of us could never dream of owning, nor the tax accountants to minimise our tax to zero to help fund it, is apparently bad bad bad?
3) Why does Lyle get to tell his sad ‘my share portfolio might need to be rearranged’ story on TV, but we don’t get to hear the stories of workers who are locked out of their work for asking for a pay rise, or the people being villainised for being unemployed, or the families of children who attend underfunded schools, or the single-mother who can’t afford to take her child to the doctor because of Liberal cuts to Medicare? Why do the Liberals and the media, not just Murdoch-run, but Fairfax and the ABC as well, give Jean and Lyle a run, but don’t tell the other side of the story?
I would like to talk about this please. Because, the problem is not just this story. This same situation happens time and time again, political story after political story, the frame is always the same. I think Jean is just the wakeup call this country’s political landscape needs. What is the society we really want, and how are the Liberals, their media-arm and their rusted-on self-entitled Liberal voting Jeans and Lyle’s stopping us getting that? And if we’re really serious about doing something about wealth inequality, how are we going to get there with this tsunami of elite and powerful opposition against positive change? Answers can be posted below, cheers.