$482 billion in Franking credits that Treasury know nothing about it!
Here’s another ticking budget time bomb.
There is $482 billion dollars sitting in company franking accounts.
To put that in perspective that’s half the national debt of a trillion dollars, or the last five years of company tax receipts that could be refunded.
Needless to say the head of Treasury had no idea about it and the contingent liability doesn’t even sit on the balance sheet which it should.
Take a bow Peter Costello. Your idea to refund franking credits has resulted in a ticking time bomb. It would interesting to see if franking credits would fall under acquisition of property on just terms if they were to be abolished.
There is no way the federal budget can afford to refund these credits.
Economics Legislation Committee
26/02/2025
Estimates
TREASURY PORTFOLIO
Department of the Treasury
Senator RENNICK: The other thing I’m concerned about is I asked the ATO in the last set of estimates—and I might have raised it with you—how much money was in franking accounts that hasn’t yet been distributed. I was shocked to find out that about $480 billion is sitting in franking accounts. That’s a contingent liability on the Australian government. That’s almost a half-a-trillion-dollar debt again. Is that figure ever disclosed regularly, like every year in the budget? If not, shouldn’t it be given the size of it?
Dr Kennedy: That’s a good question. I haven’t followed the debate. I’m going to have to take on notice—and I’ll come back to you quickly—what’s disclosed in the budget. That may be through the course of this estimates actually when the relevant officials turn up a bit later
