What are franking credits in Australia?

Franking credits (also called imputation credits) represent company tax already paid on dividends. Fully franked dividends include a tax credit of 30% (the company tax rate). These credits reduce your personal tax or can be refunded if you're in a lower tax bracket.

How do I calculate grossed-up dividend yield?

Grossed-up yield = Cash dividend + Franking credit. For a fully franked dividend, the grossed-up amount is the cash dividend ÷ 0.70. For example, a $700 fully franked dividend has a grossed-up value of $1,000 ($700 cash + $300 franking credit).

Dividend Yield Calculator Australia 2025 | Franking Credits | IntuitiveCalc

Dividend Yield Calculator

Calculate dividend yield, franking credits, and after-tax returns for Australian shares.

Investment Details

Share Price ($)

Annual Dividend Per Share ($)

Franking Level

Number of Shares

Your Marginal Tax Rate

Dividend Yield

Cash Yield 5.00%

Grossed-Up Yield 7.14%

After-Tax Yield 5.18%

Annual Income (on 1,000 shares)

Cash Dividend $2,500

Franking Credits $1,071

Tax Payable/Refund -$91

After-Tax Income $2,591

Tax Calculation Breakdown

Grossed-Up Dividend

$3,571

Tax on Grossed-Up

$1,161

Less Franking Credit

-$1,071

Net Tax

$90

After-Tax Return by Tax Bracket

Comparison by Tax Bracket

After-tax income from a fully franked $2,500 dividend:

Tax Bracket	Tax Rate	Tax Payable	After-Tax	Effective Yield

Understanding Franking Credits

How It Works

Company earns $100 profit, pays 30% ($30) company tax
Remaining $70 paid as fully franked dividend
You receive $70 cash + $30 franking credit
$100 is added to your taxable income
You pay tax at your marginal rate on $100
Franking credit reduces your tax bill

Who Benefits Most?

Low Income Earners (0-16%)

Get franking credit refund

Super Funds (15%)

Half the credit refunded

High Income Earners (45%)

Still reduce tax, but pay extra

IntuitiveCalc