Ann: Update - Dividend/Distribution - TLS, page-99

Its not like that at all
The employee pays tax on the wage they receive.
The company pays tax on the profit they make.

Dividends are not wages they're completely different. Dividends are profits paid out after tax. They are considered income, as are wages, but tax has already been paid on such, unlike wages which are paid out as gross and the wage earner pays tax after the fact. As in the case of dividends the tax has already been paid the recipient is granted a franking credit so as not to be taxed twice.

Franking is a tax credit. It is not a cash payment. If you pay no tax you get no credit