Aussie funds on election watch as Labor government looms

摘要

The imminent Australian federal election could trigger a shift in the country's unusual domestic equity-heavy asset allocation mix if, as expected, the opposition Labor party secures victory on May 18. Labor has promised to remove franking credits, a form of tax rebate, on equity dividend payments whenever they exceed the tax paid by shareholders, a change that will primarily impact wealthy pensioners. This reform, it projects, will save the budget A$59bn (US$42bn) over 10 years.