The Standing Committee on Economics will inquire into and report on the use of refundable franking credits, their benefits and the implications of their removal, including:

• analysis of who receives refundable franking credits, the opportunities it provides to offer alternative savings and investment vehicles to low and middle income earners, and the impact it has on lowering tax bills
• consideration of how refundable franking credits support tax principles, particularly implications for tax neutrality, removal of double taxation and fairness
• if refundable franking credits are removed; who it would impact and how and the implications from expected behavioural change by investors, including for
    
  
  • increased dependence on the pension
  • stress and complexity it will cause for Australians, including older Australians to adjust their investments
  • if there are carve outs applied, what this might mean for additional complexity, uncertainty and fairness
  • reduced incentives to save and distortions to which asset classes are invested in and funds are used, and
  • the reliability of providing a sustainable revenue base over the longer term.