Sure you pay tax on whatever you earn. You earn more money you pay more tax and the franking ofsets this so you don't pay tax twice....however where does the franking credit come from..
Franking comes from taxes paid on profits by the company earned in Australia. The diversification STO has on taking over OSH (PNG ie non-Australian assets), the high level of expenditure and writedowns on Gladstone assets have materially reduced the franking balance.
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