Do those people have elderly relatives who supplement their pension income with dividends?

People may be concerned that their parents or grandparents may be forced onto the age pension.

What about the relatives of the moderarely well off retirees who don't want to see their inheritance shrink?

Everybody with a super fund(401k for Americans reading this) receives some benefit from dividend imputation. Every super fund manager in Australia, not including SMSF's, holds shares in dividend paying stocks. Assuming you're Australian and of working age from your awareness on the matter, by proxy at least you too "own" shares in companies like the big 4 banks and benefit from their delicious fully franked dividend. It's hard to find someone in Australia who doesn't in some way benefit from franked dividends.