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A company may distribute dividends though it has no franking credits (perhaps because it has been making tax losses), which are called an unfranked dividends. It may also pay a franked portion and an unfranked portion, known as partly franked. An unfranked dividend (or the unfranked portion) is ordinary income in the hands of the shareholder.
The later dividend could be either fully or partly franked, as for any dividend. To the extent that it has been previously assessed it is tax-exempt, but the imputation credit component of the later dividend is assessable, and credit available. This means that the franking credit attached to the dividend is still available to the shareholder.
Thus a franked dividend of $0.70 plus $0.30 credit is exactly equivalent to an unfranked dividend of $1.00, or to bank interest of $1.00, or any other ordinary income of that amount. (It's exactly equivalent because franking is fully refundable, as described above.) Franked dividends are often described as a "tax effective" form of income.
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Unfranked dividends received by non-residents are subject to a withholding tax, which does not apply to franked dividends. From 2015 to 2016, designated "small business entities" with an aggregated annual turnover threshold of less than $2 million were eligible for a lower tax rate of 28.5%.
A recipient of a fully franked dividend on the top marginal tax rate will effectively pay only about 15% tax on the cash amount of the dividend. In effect, when distributed as dividends, the profits of a corporation are taxed at the average of the shareholders' marginal tax rates; otherwise they are taxed at the corporate tax rate.