Where to now for long term investors of Telstra, page-6696

It wouldn't be "Double TAX" it would be a final tax. You wouldn't pay tax on the dividends; you just wouldn't receive back the tax the company has paid on it's profits. If all of the shareholders of a publicly listed company were retirees over 65 then the company would effectively pay 0% tax. That would be great for the economy wouldn't it.......
Ie. a company makes $100K profit, pays $30K tax and has $70K left in the bank. The $70K gets paid out in cash as a FF dividend to the shareholders with the $30K attached franking credits (which is a non-cash transaction). As the shareholders are retirees they get back the franking credits as a tax refund when they prepare their tax return. Meaning the company effectively pays 0% tax on $100K profits. Under the proposed changes the $70K dividend would still be paid out, and be tax free, but the $30K franking credits would be non-refundable therefore the tax would be a final tax of 30%.