Don't panic on parental leave

The costs of the Coalition scheme will probably not be significant.

Widespread concern about major costs for share investors if the Coalition wins the election and implements its paid parental leave program is largely unjustified, for two key reasons. 

First, a change of government will see the end of the non-rebatable mineral resources rent tax, levied at a much higher rate on large resources companies. Second, compared with the recent large reductions in incomes resulting from falling interest rates, the impact of a 1.5 per cent reduction in the company tax rate available to larger companies for franking purposes is likely to be marginal.

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Daryl Dixon

Executive Chairman

Daryl Dixon is one of Australia’s foremost investment experts and a well known writer and consultant. He has provided trusted advice to thousands of personal clients over more than 25 years and is an acknowledged expert in the areas of tax, superannuation (including public sector superannuation), social security and investments.

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