Franking Credits Calculator
Calculate franking credits (imputation credits) on Australian dividends. See your tax offset and potential refund.
Franking Credit Breakdown
Cash Dividend
$1,000
Franking Credit
$428.57
Grossed-Up Dividend
$1,428.57
Tax on Dividend
$428.57
Net Tax Payable
$0.00
Effective After-Tax Income
$1,000.00
Dividend Breakdown
How Franking Credits Work
Dividend imputation prevents double taxation of company profits. When an Australian company pays tax on its profits, shareholders receive a "franking credit" representing the tax already paid.
Example: $1,000 Fully Franked Dividend
- • Company earns $1,428.57 profit
- • Pays 30% company tax = $428.57
- • Distributes remaining $1,000 as dividend
- • You receive $1,000 cash + $428.57 franking credit
- • Report $1,428.57 as assessable income
- • Claim $428.57 as tax offset
Franking Credit Refunds
If your franking credits exceed your tax liability, you may receive a refund. This commonly benefits:
- • Retirees with low taxable income
- • People in the tax-free threshold
- • Self-managed super funds (SMSFs)
- • Registered charities