When former Prime Minister Kevin Rudd said he wanted to scrap salary-sacrificing tax breaks to pay for a faster move to a floating carbon price, McMillan Shakespeare got smashed.
Its share price was halved, with around $549 million stripped from its market value shortly after Rudd’s announcement.
The company went into a trading halt, and several investment managers had likened buying the company to betting on the outcome of Saturday’s Federal Election.
“Instead of using Sportsbet or any of the other betting companies, you might as well have a bet on McMillan if you think the Coalition will win,” BT Investment Management portfolio manager Noel Webster said in July.
While in opposition, Prime Minister-elect Tony Abbott said he would scrap Rudd’s changes to the Fringe Benefit Tax, which were derided by the automotive industry.
Around half of McMillan Shakespeare’s losses have been clawed back, especially after it looked certain the Coalition would win the election. Though it will still be one to watch today.
Shares last traded at $13.40, down from a 12 month high of $18.00. It fell to below $8.00 on Rudd’s FBT changes.
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