Calculator
Franking credit calculator
Gross up a franked dividend, apply your marginal rate, and see what you actually keep — and whether the franking credit leaves you with a refund or a top-up bill. FY2025-26 resident rates.
Results
Franking credit
A$428.57
Grossed-up dividend
A$1,428.57
Tax at your rate
A$457.14
Net after-tax value
A$971.43
Franking credit vs tax on the dividend
Top-up tax of A$28.57
The franking credit does not fully cover the tax at your rate, so you pay the difference.
You keep A$971.43 of every A$1,000 in fully-franked dividends at your marginal rate.
Franking credits are refundable in Australia: if the credit exceeds the tax on the grossed-up dividend, the excess is refunded (or reduces tax on your other income). A 0% taxpayer — such as a fund in pension phase — receives the whole credit back in cash.
How franking credits work
Australian companies pay tax on their profits before paying dividends. Under the dividend imputation system, that company tax is not lost to shareholders — it is passed on as a franking credit (also called an imputation credit) attached to the dividend. The credit represents tax the company has already paid on your behalf.
To work out what you owe, you first gross up the dividend: add the franking credit back to the cash dividend to reconstruct the pre-tax profit. You are taxed on that grossed-up amount at your marginal rate, then the franking credit is applied as an offset against the resulting tax. Because the credit is refundable, if it is larger than the tax on the grossed-up dividend, the difference comes back to you as a refund or reduces tax on your other income.
This is why fully-franked dividends are especially valuable to low-rate taxpayers. Someone on a 0% rate — a self-managed super fund in pension phase, for example — pays no tax on the grossed-up dividend and receives the entire franking credit back in cash. Someone on the top marginal rate still benefits, but pays a top-up because their rate exceeds the 30% (or 25%) company rate already embedded in the credit.
Worked example
You receive a A$1,000 fully-franked dividend from a company taxed at 30%. The franking credit is A$1,000 × (0.30 ÷ 0.70) = A$428.57, so the grossed-up dividend is A$1,428.57.
On a A$90,000 income your marginal rate is 30% plus the 2% Medicare levy, i.e. 32%. Tax on the grossed-up dividend is A$1,428.57 × 32% = A$457.14. After applying the A$428.57 credit, you owe a further A$28.57 and keep A$971.43 of the original A$1,000.
Change the income to A$30,000 (a 16% marginal rate, no Medicare levy) and the tax becomes A$228.57 — less than the A$428.57 credit — so A$200.00 is refunded and your net value rises to A$1,200.00 on a A$1,000 cash dividend.
Common questions
Are franking credits refundable?
Yes. Since 2000, excess franking credits are refunded to Australian resident individuals and super funds. If your franking credits exceed the total tax you owe, the ATO pays the difference back in cash. A taxpayer on a 0% rate receives the full credit as a refund.
What is the gross-up formula?
The franking credit equals the cash dividend × (company tax rate ÷ (1 − company tax rate)) × franking percentage. For a fully-franked dividend at the 30% rate that is dividend × (0.30 ÷ 0.70) = dividend × 0.4286. The grossed-up dividend is simply the cash dividend plus that franking credit.
What is the 45-day rule?
To claim franking credits you generally must hold the shares "at risk" for at least 45 days (90 days for certain preference shares), not counting the days of purchase and sale. A small-shareholder exemption applies where total franking credits are A$5,000 or less in the year. This calculator assumes you are entitled to the credits.
Why is a partly-franked dividend worth less?
The franking percentage scales the credit. A 50%-franked dividend carries only half the franking credit of a fully-franked one, so less company tax is passed through and your after-tax value is lower for the same cash amount. Set the franking percentage above to see the effect.
General information only — not tax advice.
This calculator uses FY2025-26 resident individual tax rates and is a simplified model. It applies a single marginal rate to the whole grossed-up dividend and a flat 2% Medicare levy for taxable income above A$45,000 (the real levy phases in over a low-income threshold and can be reduced or removed by exemptions and offsets such as the low-income Medicare levy reduction). It ignores the Medicare levy surcharge, the low-income tax offset, HELP/HECS repayments, non-resident rates, the 45-day holding rule and other individual circumstances. Figures are estimates for general guidance. Consult a registered tax agent for advice about your situation.