the longer you wait rio the more it will cost, page-12

L.E,

The answer is that man X pays 15% tax on all situations. This is based on the fact that at all of those levels of dividends the current tax rate is 45%. Hence the company pays 30% for you (the franked amount) and you pay the remaining 15% to make 45%. However you can also use the franking credits you receive with the dividend to offset some of this 15% that you have to pay effectively reducing the the tax burden to close to 0%. I stand to be corrected but thinking back to my uni days, that is how it works.