divvies, page-123

" As an example, if I received a $100 000 dividend that was fully franked, at tax return time, I would be refunded another $30 000, which is the company tax paid on profits. Not a bad return for being a lazy investor."
In fact, the franking is better than that. Franking represents a return of the tax the company paid before that $100,000 became available to pay the dividend (to avoid double taxation). The company actually earned $142,857.14 and paid 30% of that as tax leaving $100,000 for your dividend, so the company actually paid tax of $42,857.14 in tax when the profits were originally earned. You will, therefore, receive $42,857.14 as your franking credit BUT you will pay tax on $142,857.14 at your marginal rate (which may be more or less than 30%).