What is a fully franked dividend?

A fully franked dividend has had company tax paid on all of the underlying profit. The franking credit is worked out from the company tax rate that applied, not from a single fixed ratio: at the standard company rate it is 30/70 of the cash dividend, and for a base rate entity it is 25/75. Use the company tax rate selector above to match the company you hold — most large listed companies pay the standard rate, and smaller ones may be base rate entities. Your dividend statement shows the actual franking credit, which is the reliable check.

Do I get franking credits refunded?

An Australian-resident individual whose total franking credits exceed their tax liability for the year receives the excess as a refund. This commonly applies to low-income earners and SMSFs. Foreign residents do not get a refund of excess franking credits.

How do I report dividends on my tax return?

Report the franked amount plus franking credit as income. The credit appears separately as a tax offset. Your dividend statement shows the amounts.

Dividend Tax Calculator Australia

Calculate dividend income and understand the tax implications of franking credits

Calculate franked dividend tax, franking credit offsets and see how franking credits affect your tax payable or refundable. Working out franking credits on their own? Use the Franking Credits Calculator.

Dividend Details

Enter your dividend information and tax details

Dividend Amount

Franking Percentage

Check your dividend statement — many ASX dividends are partially franked (e.g. 75% or 90%), not just fully or unfranked

Company Tax Rate

Most companies pay franking credits at 30%. Some smaller companies (base rate entities) pay 25% — check your dividend statement if unsure

Other Taxable Income (optional)

Include your salary or other income to see accurate tax calculations

Tax Year

Tax Residency Status

Private Health Insurance

Affects whether the Medicare Levy Surcharge applies at higher income levels

Calculation Results

Dividend tax and franking credit breakdown

Dividend Amount$1,000

Franking Credit$429

Grossed-Up Dividend$1,429

This is the amount included in your taxable income

Tax Calculation

Tax on Grossed-Up Dividend$0

Less: Franking Credit-$429

Estimated Additional Income TaxRefund of $429

Effective Refund Rate42.9%

After-Tax Dividend$1,429

Note: Franking credits provide a tax offset. If your marginal tax rate is below the corporate tax rate (30%), you may receive a refund for excess franking credits.

The link reopens this calculator with your figures filled in.

This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.

How to Use This Calculator

1Enter your dividend amount received
2Select the franking percentage (100% = fully franked)
3Enter your other taxable income for the year
4Select the tax year and your residency status
5See your grossed-up dividend, franking credit and tax position

What Are Franking Credits?

Franking credits (also called imputation credits) are tax credits attached to dividends from Australian companies. When a company pays tax on its profits, it can pass these credits to shareholders.

The franking credit represents tax already paid by the company. When you receive a franked dividend, you include the grossed-up amount (dividend + franking credit) in your income, then claim the franking credit as a tax offset.

How Franking Credits Affect Your Tax

Grossed-up dividend: Cash dividend + franking credit = assessable income.
Tax offset: The franking credit reduces your tax payable dollar-for-dollar.
Refundable credits: Franking credits offset tax on all of your income, not just the dividend. Where they exceed your basic tax liability for the year, after any other offsets, an Australian-resident individual receives the excess as a refund.
45-day rule: Shares must be held at risk for at least 45 days, not counting the days of acquisition and disposal, to claim franking credits. It only applies where your franking credits for the year reach five thousand dollars.

How franking credits are treated

•Franking credits are refundable for Australian-resident individuals, so where the credits exceed the basic tax liability for the year the excess is refunded. That is why the outcome differs most for people on low marginal rates.
•Both the cash dividend and the franking credit are included in assessable income, and the credit is then applied against the tax on that grossed-up amount.
•The holding period rule generally requires shares to be held at risk for at least 45 days, not counting the days of acquisition and disposal, before franking credits can be claimed. A small shareholder exemption lifts that rule where your franking credits for the year total less than five thousand dollars, though the related payments rule still applies to each dividend.
•The benefit of a franking credit depends on your marginal rate against the company tax rate the credit represents, which is the standard rate for most large listed companies and the lower base rate entity rate for some smaller ones, so the same dividend produces a different after-tax result at different income levels.

Frequently Asked Questions

Official Sources

Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.

About this calculator

This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.

What can move this result

It only knows the figures you type in. Offsets, deductions, prior-year losses, other income, your partner's position and anything you have not entered are not in the result, and any of them can move it a long way.
Rates and thresholds change, sometimes mid-year and occasionally with retrospective effect. Each calculator shows the financial year and the verification date it is working from — outside that year the result is wrong rather than approximate.
Assumptions are set to a reasonable default and every non-statutory one can be changed. Defaults are not predictions, and a small change to a growth or inflation assumption compounds into a large change in a long projection.
Where a result reaches two or more years into the future it is shown in today's dollars as well as future dollars, because a future-dollar figure overstates what the money will actually buy.
It is a generic calculator. It is not built around any particular product, it does not compare the market, and it cannot tell you whether a product is suitable for you.

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About this calculator

What can move this result

It only knows the figures you type in. Offsets, deductions, prior-year losses, other income, your partner's position and anything you have not entered are not in the result, and any of them can move it a long way.
Rates and thresholds change, sometimes mid-year and occasionally with retrospective effect. Each calculator shows the financial year and the verification date it is working from — outside that year the result is wrong rather than approximate.
Assumptions are set to a reasonable default and every non-statutory one can be changed. Defaults are not predictions, and a small change to a growth or inflation assumption compounds into a large change in a long projection.
Where a result reaches two or more years into the future it is shown in today's dollars as well as future dollars, because a future-dollar figure overstates what the money will actually buy.
It is a generic calculator. It is not built around any particular product, it does not compare the market, and it cannot tell you whether a product is suitable for you.