"Share holders are tax exempt"
Pear,
It is a subsidy to the rich, but the problem is not with the system of imputation credits, which brings equity between people and entities with different tax liabilities. A fund in accumulation phase gets half the credits back for instance.
The problem is with the tax rates applicable to those entities.
If super income streams were taxed[as I think they should, with appropriate set offs to account for tax paid], then the "subsidy" from franking credits goes away. It becomes a timing issue essentially.
If your concerns are on refund of credits in general[including a low income wage earner with some shares], then we will just have to agree to differ.
cheers
