Labor's franking credits plan adds up to a Nana tax - Google Search Some 6.1 per cent of taxpayers appear to earn excess franking credits – less than the 8 per cent Labor claims. That could be good or bad for Labor's expectations as to revenue. So the next question is, who are these 6.1 per cent? Women make up 56 per cent of taxpayers earning excess franking credits but only 48 per cent of the sample data. Of those women, 68 per cent are over 60. Labor wants to tax your Nana. But maybe Nana is rich. Maybe Nana and Pops have organised their affairs so that the share portfolio is in Nana's name so as to minimise their joint tax liability. So I went and had a look at the total and taxable incomes for all women and then those women with excess franking credits. Taxable and total income figures for those women with excess credits tended to be lower than all women on average, and for each age group. To be certain that this wasn't due to tax planning I then added the franking credits back to total income and recalculated all the average and found the same result. These women are not "rich" and, on the assumption that not reporting spousal details indicates single status, some 47 per cent of these women are either single or widowed. So a whole lot of (widowed) elderly women are about to face a marginal 30 per cent tax rate under a new Labor government, and will lose a portion of their current income. The numbers go down once I account for the pension guarantee that Labor has proposed – but not by much. We are being invited to believe that this tax grab on the elderly won't have any flow-on effects to their children and loved ones. What could these women do to "avoid" the tax on their livelihoods? I expect that many will sell down their share portfolios to qualify for the pension (or for more of the pension) and use the proceeds to renovate their homes. I doubt that this is the policy intent, but it does suggest Labor will raise a lot less revenue than it imagines, and that the social costs of this policy are higher than they anticipate.