Wrong. Low income earners do not get paid out franking credits in the form of tax refunds. If their tax payable is $0, and they get FC, then they pay and are paid $0.
So your scenario would be: Low income earners below $15k ($6k tax free threshold + 9k effective tax free zone from LITO) have $1 extra in income and no tax to pay, no tax refunds to receive.
Foreign investors are better of as they get extra income and F/C is irrelevant.
Higher earners above $15k (anyone who pays tax can claim back the Franking credits) have $1 extra in income but have $1 in tax to pay, so status quo.
