A Liberal senator says Labor’s “regressive” franking credit policy will overwhelmingly impact self-funded retirees of modest means.

Ray Hadley says he’s been getting mixed messages on the confusing policy, with some claiming it will only impact wealthy Australians.

But Assistant Minister for Treasury and Finance Zed Seselja says it will have a heavy impact on self-funded retirees who have modest superannuation savings.

“This is the really nasty part of this policy. It’s not targeted at rich people.

“It’s a real attack on people who have saved for their retirement. It’s a real attack on Australians who have worked very, very hard and have got a modest retirement income.”

Click PLAY below to hear the policy explained

RELATED:

Anthony Albanese clashes with callers over franking credits