Australian share market returns will remain strong without franking credit refunds, which should be considered as the “icing on the cake” of investing in local equities.

Labor’s proposed policy to disallow franking credit refunds to certain retirees will act as a disincentive to save, according to the SMSF Association.

Data used to project the cost of the removal of franking credit refunds has been questioned with concerns that it failed to include the impact of the transfer balance cap.

SuperConcepts has also welcomed a recommendation to retain refundable franking credits claiming it would retain the zero tax rate for those who pay no tax.