the longer you wait rio the more it will cost, page-17

ok, so when you receive a dividend there are two parts to it. You get the fully franked amount which the company has paid tax on at 30%. This adds on to your income. say you have a $100,000 fully franked dividend. you receive $100k and this 100k is counted as your income. However along with this $100,000, you get a franking credit which is a tax credit that has been paid by the company for the release of this money. (the actual percentages of of the credit are a little hazy). But this additional credit that you receive is a tax deduction as it is tax that has been payed by the company on your behalf. hence it can be directly offset with the dividend. so, back to our example,

you get 100k as a dividend,
this 100k has a 20k (usually more) fraking credit,
(amounts above 75k are taxed above the 30% tax rate and hence you only have to pay tax on the 25 grand above the 30% tax rate.)
you use your franking credit to offset the 25 grand of taxable income you have and it brings you back to 5 grand of taxable income (FREE) lol.

im looking all this up now as we speak. fairly sure this is how it works though