What is a fully franked dividend?

A fully franked dividend has had company tax paid on 100% of the underlying profit. The franking credit equals 30/70 of the cash dividend (about 42.86%).

Do I get franking credits refunded?

If your total franking credits exceed your tax liability, you receive the excess as a refund. This commonly applies to low-income earners and SMSFs.

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 Calculator Australia - Franking Credits Calculator

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

Dividend Details

Enter your dividend information and tax details

Dividend Amount

Franking Percentage

Most Australian companies pay fully franked dividends (100%)

Other Taxable Income (optional)

Include your salary or other income to see accurate tax calculations

Tax Year

Tax Residency Status

Calculation Results

Dividend tax and franking credit breakdown

Dividend Amount$1,000

Franking Credit$∞

Grossed-Up Dividend$∞

This is the amount included in your taxable income

Tax Calculation

Tax on Grossed-Up Dividend$0

Less: Franking Credit-$∞

Tax PayableRefund of $0

Effective Tax Rate0%

After-Tax Dividend$0.00

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.

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: If your tax rate is below 30%, excess credits may be refunded.
45-day rule: You must hold shares 'at risk' for 45 days around the ex-dividend date to claim franking credits.

Maximising Franking Credit Benefits

•Low-income earners and retirees often receive franking credit refunds
•Include dividend income in your tax return - don't forget the franking credits
•Hold shares for at least 45 days to satisfy the holding period rule
•Consider your total taxable income when planning dividend investments

Frequently Asked Questions

Official Sources

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

Rates and thresholds last updated for the 2024–25 financial year.

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