Except that companies do not pay tax on behalf of shareholders. Companies are a taxable entity and shareholders are another taxable entity.
Both are liable to pay tax on their taxable incomes. Franking is a generous gift to shareholders which allows them to offset company tax paid against their own taxable incomes. This generosity was never intended to be taken a step further by actually refunding franking credits to anyone but Howard extended it to that as an electoral bribe even though it's not justifiable and not economically sustainable.
Labor is acting in Australia's best interests by removing refunds the bulk of which go to wealthy retirees who pay no tax anyway and most certainly should not be entitled to any refund of tax they never paid.
But of course they will scream and cry about it because nobody likes anything being taken away from them and the government will cherry pick some low income retirees who are adversely affected and make it look like Labor is only hurting the little guy.
Dave R.
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