What Labor Did Wrong

  1. Too many policies.
  2. One of the main policies poorly explained

Because Labor would receive a windfall from reducing the tax handouts, they felt they had to spend it all. Two or three key areas would have sufficed. Even if it meant only ending one of the tax handouts. However I lost count of how many amazing things they would spend the money on. It was overwhelming

Labor had a month to react. The Liberals were saying that Labor would increase taxes on pensioners. All Labor needed to do was explain it better:

  • The SMSF franking credits are typically for people who have shares in banks, and the credit effectively gives a return of around 10%
  • Nobody else gets such an amazing return on their investments (people in regular super funds get a return more like 2%)
  • It is subsidised by the government
  • If the cash payout is removed, SMSF people can invest their savings into anything else they want, that doesn’t provide franking credits

An ad could show a pensioner asking what she needs to do. Easy, just sell your bank shares and buy different shares. It is “self-managed” so you should be able to do that. Or accept that a 7% return is still amazing, just not 10%.

A smart advertising agency would make that ad, and show it to Labor, for next time.

0