The couple have all their savings in Australian-listed investments through their self-managed super fund. About 85 per cent of their money is the big dividend-paying shares such as Telstra and the big banks. Under the plan announced by Opposition Leader Bill Shorten on Tuesday, imputation credits would no longer be refundable. These are tax credits attached to dividends of Australian-listed companies where shareholders can claim a cash refund from the Tax Office if the value of the tax credits exceeds the shareholder's tax liabilities. Most retirees have tax liabilities and without refundable tax credits, lose the benefit of the credits.

"We were encouraged by successive governments during our working life to set aside for our retirement and not become an added burden on the economy by accessing the age pension," Margaret said. Margaret Osborne at her Rozelle home. Credit:Louise Kennerley It is not only a major problem for better-off retirees like Margaret and her husband, but also for other retirees, many of whom are likely to be pushed onto the age pension, she said. Loading "I don't think Labor has thought this through," she said.

If Labor wins the next election the change to dividend imputation would start from mid-2019. It is not only the better-off retirees who would be affected. Andrew Stark, who is in his "mid-50s", came out of a divorce with a modest amount of money which he invested in Australian shares. He lives off about $150 per week after paying the rent on his home on the NSW Central Coast of $210 a week. He has some casual work, but not enough to have an income tax liability against which he can offset his tax credits. The $16,000 a year from his share portfolio would drop to about $11,000 under Labor's plan.