The Greatest Trick
Labor's greatest trick was to focus the attention of the unsuspecting voters on the amount refunded under the franking credits system.
What they failed to disclose was that after the refund the ATO still retained the same amount of tax it would collect if the taxable income had been received from any other source outside the franking system.
So no less tax is collected on franked dividends, even if there is a franking credit refund than would otherwise be collected normally if the same amount of taxable income was received by the same taxpayer from any source outside the franking system.