“Across Australia, people, including many who will not be able to access refundable credits under Labor’s policy, both respect a political party that has the courage to put its policies out long before an election and also know that some of the tax concessions that favour higher wealth individuals simply can’t go on,” Mr Bowen said.

“In 2014–15, $5.9 billion was spent on refunding dividend imputation credits. The commonwealth government in the same year spent less than this on public schools at $5.2 billion. This can’t go on.”

He also disputed claims that the policy would discriminate against SMSFs in favour of industry funds.

“Put aside the fact industry funds are jointly managed by unions and employers. The fact is, industry funds are treated the same way as retail and bank funds. And all these funds pay tax,” Mr Bowen said.

“Allowing them to use franking to offset that tax is a fundamental principle of avoiding double taxation. In fact, it is tax refunds to non-taxpaying SMSFs and individuals which is the anomaly in our tax system. No other element of our personal income tax system involves refundable credits. None.”

Mr Bowen said that if the people made investment decisions solely on the basis of franking credits, the tax system is then distorting investment when it should ideally be “a non-distortionary tax system”.

“Just remember, 92 per cent of individual taxpayers are unaffected by Labor’s reforms to refundability and dividend imputation,” he said.

Ever since the policy was announced last year, Labor’s plans for imputation credits have been criticised on several fronts by the SMSF sector.

Tactical Super director Deanne Firth said that while the measure has been touted as a loophole enjoyed by the wealthy, it is set to hurt self-funded retirees in SMSFs the most.

“Retail super funds still qualify to offset their tax using imputation credits as their net tax position is positive — not due to a member by member allocation but because, pooled overall, they have a positive tax position. So, the policy is a tax on the use of a particular structure: an SMSF,” Ms Firth explained.

Other commentators have pointed out that the policy won’t actually target the rich as intended.

“It seems to me that this measure could actually allow the rich to accumulate more in super,” SuperConcepts’ Peter Burgess previously told SMSF Adviser.

“Transferring some of their pension balance to the accumulation phase may allow them to use all of their franking credits. The effect will be more retained in super for longer, as they can draw down super from accumulation phase when they need it rather than being forced to take the minimum pension each year.”