Labor tax change a test for confidence
Most Australians understandably probably aren't across the fine detail of dividend imputation.
But for those who are and would be affected by Labor's proposed changes, it may have curtailed any future spending plans.
Reaction to the plan may have an impact on the latest weekly ANZ-Roy Morgan consumer confidence index to be released on Tuesday - a pointer to future spending.
Labor plans to end cash handouts for non-taxpaying shareholders on their dividend credits, saving over $5 billion a year and impacting more than 200,000 people.
The confidence index fell 2.5 per cent last week in response to the latest national accounts which showed the economy grew at its slowest pace in over a year during the December quarter.
The slim 0.4 per cent rise in the final three months of 2017 dragged annual growth down to 2.4 per cent.
The soft outcome even surprised the Reserve Bank, although its governor Philip Lowe does not expect it affects his optimistic outlook "at all".
The central bank will release the minutes of its March 6 board meeting on Tuesday, where it again left the cash rate at a record low 1.5 per cent.
