Gazza,Wrong. Low income earners do not get paid out franking...

Gazza,

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.