Governments and others should recognise that they have structured their finances to lessen the burden on the age pension system.

The allocation of franking credits, whether to retirees or income-earning taxpayers, is designed to tax the recipient at their marginal tax rate, in the case of superannuants on a pension, nil tax under superannuation tax provisions.

What is not discussed or recognised is that those outside of the superannuation system pay nothing in tax on the first $20,000 of income, making it possible to have a term deposit of $500,000 earning up to $20,000 interest tax free.

The simple answer is to go back to the Keating system and leave things alone, i.e. in a pension stage super income is tax free, but the pension withdrawal itself is taxable at the members marginal rate.

This federal government proclaims a platform of reducing taxes, which seems only to apply to the company tax, reducing from 30 per cent to 28.5 per cent - but the rest of us can be faced with additional taxes such as the “medical co-payment”, “budget  repair levy” and “tax on your super” or removal of franking credits on shares.

Any threats to superannuation or the imputation system in this country will cause well-funded superannuants to shift their resources out of superannuation or Australian companies into more tax-effective vehicles - not good for those struggling Australian companies. 

Both sides of our political system should stop any discussion that affects confidence and certainty in superannuation and the imputation system.

But with the present intransigent senate minority scoring political points without accountability, one can’t tell what the future holds.

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