Refunding of franking credits is a logical policy. The illogical move was to take pension-paying Super out of the tax system. If this hadn't happened, there would be no refunds and no issue. As it is, Super in pension mode can be used to invest for high capital growth completely outside the tax system: arguably a much bigger rort than an annual "gift" from the ATO. But I doubt that any politician is brave enough to take that on.
