My understanding, which is a little vague and may be wrong, is that in the case of Industry super funds, members are mostly still in the workforce and paying tax. As the funds are pooled the fund is able to make use of the tax paying members to claim the franking credits and distribute them across the pooled funds.
Some SMSF's would be in that boat too i.e. the member pays tax on other income, rental receipts, interest, capital gains or such and can claim the franking credit. However SMSF's in pension phase paying no tax cannot claim such.
When rules change they'll always be winners and losers. People attempt to organize their affairs to be in the winners circle. But rules are never set in stone and Superannuation has been in constant rule change since implementation.
I feel that on the whole the system of claiming a tax rebate when you don't pay tax is unsustainable and the Country suffers due to such
Some Individuals will be worse off, there's no doubt, but I feel the number and extent is exaggerated, often by those same people who stand to lose
Overall I believe it will be a better system, though in no means perfect, than we have at present.
How is that fair? well it isn't though it may well be fairer than receiving a credit for tax that you haven't paid.
Ultimately that is a question that the voting public en masse must decide.
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