Dropping the Company Tax Rate only transfers the tax liability to the party receiving the dividend.
Dividend is income and that increases by 2%. The franking credit reduces by 2% and so the party recieving the dividend will have less tax credit and more income and therefore will pick up the difference. In some cases more and in other cases less. Depends on the entity and the individuals nominal tax rate.
It is a lie to state that the Company Tax reduction needs to be funded purely from the Super-Profits Tax.
