Hit the nail on the head Pica. The problem is not the refund of credits, it is that the taxation of pension phase payments , both smsf's and pooled funds , are taxed at 0. So someone with 100 K income in super earnings, plus 20 K outside, pays no tax. Tax that progressively , taking into account previous tax paid, and the fc problem substantially goes away. It will happen eventually, with an aging population , the present system is unsustainable. The franking credits changes won't fix that, they will just change people's behaviour. Unless , of course, JonnoH and his interpretation of the PBO's figures are correct, and people just ignore other ways of ordering their affairs. LOL cheers
