The Labor Party’s proposed policy to ban excess franking credits will diminish the control and choice of SMSF trustees and members, a House of Representatives Standing Committee on Economics hearing into the proposal was told today.

The House of Representatives Standing Committee on Economics will this week hold two hearings for its inquiry into the implications of removing refundable franking credits, after receiving hundreds of submissions from retirees.

A fund manager has warned Australia faces the prospect of its first economic recession in almost three decades if the Labor Party introduces its dividend imputation policy if it wins the next election.