meh, found this.
https://en.wikipedia.org/wiki/Dividend_imputation
Way I see it, companies have to pay tax, not just giving out dividend. If they are already paying tax on their business "activities", they might as well pass this to the shareholders. win-win situation if you ask me. For grossed up, it might imply the company paid tax, but did not pass this onto the shareholders, so technically, all things being equal, you'll never get the same amount of dividend for grossed up versus franked dividened.
Where to now for long term investors of Telstra, page-1416
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