Franking Credits Calculator
Calculate your franking credit value, grossed-up dividend, and whether you'll receive a tax refund or pay extra tax.
| Franking Credit Value | $0 |
| Grossed-Up Dividend | $0 |
How Franking Credits Work in Australia
Australia's dividend imputation system, introduced in 1987, prevents company profits from being taxed twice — once in the company's hands and again when paid to shareholders. When a company pays 30% corporate tax, it can attach those tax credits to dividends paid to shareholders.
The Calculation
- Franking credit = Cash dividend × (franking% / 100) × (30 / 70)
- Grossed-up dividend = Cash dividend + franking credit
- Tax on dividend = Grossed-up dividend × marginal rate
- Net tax payable = Tax on dividend − franking credit (negative = refund)
A worked example
A $700 fully franked dividend carries a $300 franking credit, so the grossed-up dividend is $1,000 — the company already paid the $300. At a 0% marginal rate, such as an SMSF in pension phase, the whole $300 comes back as a refund.
Who Benefits Most?
Low-income investors and retirees in the 0% or 15% bracket receive a net refund — their marginal rate is below 30%, so they get back more in credits than they owe in tax. High-income investors at 45% pay additional top-up tax, but still benefit from the credit offsetting part of their liability. SMSFs in pension phase pay 0% tax and receive the full 30% franking credit as a cash refund.