dividend stripping, page-5

superwealthy you are wrong about the $15,000 approx for total fully franked divvies for small shareholders.
The way I figure it the 30% is 30% of the grossed up divvy on which you pay tax;
ie. the sum of the franking credit and the divvy.
Thus the total amount of divvies receivable for a $5000 franking credit total would be 5000 X 7/3 = $11,666.66 which is what that bloke bulltearer suggested.
ie. $5000 + $11,666.66 = $16,666.66 [grossed up divvy] of which I think you'll find $5000 is 30%
That is why your franking credits are 3/7 of the actual divvy you receive in cash.
ie. 3/7 [franking credit] + 7/7 [actual divvy] = 10/7 [grossed up amount entered onto tax form on which 3/10ths or 30% company tax is paid on.