Australia Franking Credits Calculator
Calculate the franking credits attached to Australian share dividends and see how they reduce or eliminate your dividend tax.
Last updated: April 2026
Most large Australian companies pay fully franked dividends (100%).
Franking Credit
$428.57
Grossed Up Dividend
$1,428.57
Additional Tax Owed
−$35.71
Your marginal rate exceeds the corporate tax rate — you pay the top-up difference.
Cash Dividend
$1,000.00
Franking Credit
$428.57
Grossed Up Dividend
$1,428.57
Tax on Grossed Up Dividend
$464.29
Extra Tax
−$35.71
Effective Tax Rate on Dividend
32.50%
How Dividend Imputation Works
Company pays tax at
30%
before paying dividends
You report income of
$1,428.57
(grossed up dividend)
You receive a credit of
$428.57
for tax already paid
Because your 32.5% rate exceeds the 30% corporate tax rate, you owe an additional $35.71 in tax after using the franking credit offset.
What are franking credits?
Franking credits (also called imputation credits) represent the Australian company tax already paid on profits before they were distributed as dividends. When you receive a franked dividend, the credits are attached to compensate you for the tax the company already paid.
If your marginal tax rate is lower than the company tax rate, you can receive a refund of the excess franking credits. This makes Australian shares especially valuable for low-income earners and superannuation funds.
How to use this calculator
- 1Enter dividend amount — Input the cash dividend you received or expect to receive.
- 2Select franking level — Choose the franking percentage: 0%, 50%, or 100%.
- 3Choose company tax rate — Select 30% for large companies or 25% for small companies.
- 4Enter your marginal tax rate — Input your personal income tax rate to calculate the net tax outcome.
Formula & example
Grossed-Up Dividend = Cash Dividend / (1 - Company Tax Rate) | Franking Credit = Grossed-Up Dividend - Cash Dividend
Example: You receive a fully franked dividend of AUD 700. Franking credit = AUD 300. Grossed-up dividend = AUD 1,000. If your marginal rate is 19%, tax = AUD 190. Refund = AUD 300 - AUD 190 = AUD 110.
Benefits
Eliminates double taxation
Franking credits ensure company profits are not taxed twice, once at the company level and again in your hands.
Refundable for low earners
If your tax rate is below the company rate, you receive the excess credit as a cash refund.
Super fund advantage
Superannuation funds in accumulation phase pay 15% tax, well below the 30% company rate, making franked dividends highly tax-efficient.
Pension phase zero tax
SMSF members in pension phase pay zero tax and receive a full refund of all franking credits.
Use cases
Dividend investors
Calculate the true after-tax income from Australian dividend-paying shares.
SMSF trustees
See how much franking credit refund your self-managed super fund will receive.
Retirees
Estimate franking credit refunds when your marginal rate is zero or very low.
Portfolio comparison
Compare the after-tax yield of fully franked versus unfranked dividend stocks.
Frequently asked questions
Can I get a cash refund of franking credits?+
Yes. If your franking credits exceed your total tax liability, the ATO refunds the difference. This is common for low-income earners, retirees, and superannuation funds in pension phase.
What is a fully franked dividend?+
A fully franked dividend means the company has paid 30% tax on the entire profit distributed. A 50% franked dividend means only half the profit was taxed at the corporate level.
Are franking credits available for foreign shares?+
No. Franking credits only apply to dividends from Australian resident companies that have paid Australian company tax. Foreign dividends do not carry franking credits.
How do I claim franking credits?+
Franking credits are claimed in your annual tax return. Your dividend statement will show the cash dividend and the franking credit attached to it.
Do franking credits affect the dividend amount?+
No. The cash dividend you receive is not reduced by franking credits. The credit is additional tax relief that offsets or refunds your personal tax on the grossed-up amount.