Millionaire businessman Dick Smith has slammed Australia's franking credits system after revealing he received $500,000 of the controversial rebates in a single year.
On Wednesday, Mr Smith shared with SBS News a series of 2017 correspondences he had with the Australian Tax Office where he complained about the "overly generous superannuation perks".
"I simply don't feel that it is right for someone of my wealth to receive a tax advantage like that," he said in a letter to the ATO, before asking how he could not receive the money.
Franking credits are a rebate to those whose share dividends have already been subjected to the company tax and can be used to reduce an individual's basic income tax liability, so they aren't taxed twice for the funds.
The Howard government changed the system so shareholders who were not actually paying any tax could also claim the rebate.
In his letter to the ATO, Mr Smith said he was concerned "how a proportion of the wealthy in our society seem to do all they can to pay as little tax as possible".
The millionaire said as a result of such a generous benefit, he tried to shut the fund but was unable.
"It seems ridiculous to me that I can't close down my super fund with the sole outcome of paying more tax. Are you able to look into it?"
Dick Smith shared the correspondences with SBS News. Source: Getty
In a reply, Commissioner of Taxation Chris Jordan told Mr Smith it was an "unusual request".
"I will look into the matter and come back to you shortly about your wish to pay more tax. It's not every day I get such a request - in fact, I can't think of any day I have been asked that question," he said.
Later correspondence from the ATO's Deputy Commissioner of Superannuation James O'Halloran confirmed his office was unable to help.
"The Commissioner of Taxation has no discretion regarding the administration of market-linked pension commutations," he said.
Mr Smith told the Sydney Morning Herald and the Age, who broke the story on Wednesday morning, it was an "outrageous" use of taxpayer money.
"That's wrong, I said - I'm wealthy. My accountant said 'that's how it works, that's what you have to do'. I can't stop it. I think it's outrageous for wealthy people to be getting money from the government," he told the outlets.
Franking credits were an unexpected flashpoint of the 2019 election, with then-Labor leader Bill Shorten promising to close the "loophole" that extended the system to shareholders who were not paying any tax.
The Morrison government was quick to capitalise on Labor's planned changes, labelling them a "retiree tax".
Labor is now examining all of its policies and campaign strategies after losing to the Coalition, including franking credits.
