Hi Radicool,
There is a flaw in your argument I'm afraid.
A franked dividend represents profit plus tax paid.
The franking credit being distributed has no cost to the company.
So, if a company which at present gives out a franked divi does as you ask, then the cash divi doesn't increase from what it already is, and you get to pay tax on it, without the benefit of a credit.
So, the only time a company issues an unfranked divi is when they have not paid company tax.
This may well happen with changes in company financing structures, ie more gearing, more offshoring, trusts.
Ipo's will probably be the first signal that this is happening as we get closer to election time.
