They use franking credits to reduce their tax liability. Only If they have more franking credits than tax payable do they get a cash refund. It is only the cash refund that Labor is changing.
Most APRA regulated funds (non smsf) do not get cash refunds because they have more tax liabilities than credits as they buy all their members’ shares in the company/fund name so that all credits are pooled against pooled liabilities and apportioned to each member according to their investment choices.
