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No, you are correct. I think the point Paul is making is that the marginal rate + medicare levy for income over $37,000 is now 34%, which is higher than the company rate. You are paying top up tax of 4% for every extra dollar over $37,000, or cash dividend (assuming no other income) of $25900...

There's no shortfall of tax. The slightly higher individual income tax rates up to $80,000 will eat into the refund, but the franking credit would cover tax up to $100,000 cash dividend (assuming no other income).