Franking credits calculator

Franking Credits Calculator Australia

Calculate the tax impact of franked dividends in Australia. See your grossed-up dividend amount, tax offset, and whether you'll receive a refund or owe top-up tax.

Gross-up & offset 25% & 30% rates Refundable credits
01INPUTS

The dividend amount paid to you (before any tax)

100% = fully franked, 0% = unfranked

Most large ASX companies use 30%. Check your dividend statement.

Your taxable income excluding this dividend

02RESULTS

Enter dividend details to calculate your franking credits

Edit inputs ↑
How franking credits work

Australia's dividend imputation system prevents double taxation of company profits. When a company pays tax on its profits and then distributes dividends, shareholders receive a "franking credit" for the tax already paid.

Franking Credit = Cash Dividend × (Tax Rate ÷ (1 − Tax Rate))

Example: $100 × (0.30 ÷ 0.70) = $100 × 0.4286 = $42.86

The grossed-up dividend ($142.86) is your assessable income. You pay tax on this amount at your marginal rate, then subtract the franking credit.

Who gets a refund?

You'll receive a franking credit refund if your marginal tax rate (including Medicare levy) is lower than the company tax rate:

Taxable income Marginal rate + ML vs 30% company Result
$0 – $18,200 0% + 2% = 2% 2% < 30% Full refund
$18,201 – $45,000 16% + 2% = 18% 18% < 30% Partial refund
$45,001 – $135,000 30% + 2% = 32% 32% > 30% Small top-up
$135,001 – $190,000 37% + 2% = 39% 39% > 30% Top-up required
$190,001+ 45% + 2% = 47% 47% > 30% Larger top-up
Worked example

Sarah receives a $1,000 fully franked dividend from BHP. Her taxable income is $75,000.

Cash dividend received $1,000.00
Franking credit ($1,000 × 30 ÷ 70) $428.57
Grossed-up dividend ($1,000 + $428.57) $1,428.57
Tax at 32% marginal ($1,428.57 × 32%) $457.14
Less: franking credit offset −$428.57
Net additional tax on dividend $28.57

Sarah pays an additional $28.57 in tax on her $1,000 dividend — an effective rate of just 2.86% on the gross amount.

The 45-day holding rule

If your total franking credits for the year exceed $5,000, you must satisfy the holding period rule:

Ordinary shares — Hold for at least 45 days (excluding purchase and sale days) around the ex-dividend date.
Preference shares — Hold for at least 90 days around the ex-dividend date.
At-risk requirement — Shares must be held 'at risk' — not hedged, protected, or subject to a related arrangement that neutralises the economic exposure.
Small shareholder exemption — If your total franking credits are under $5,000 for the year, the holding period rule doesn't apply and you can claim all credits.
Company tax rates and franking credits
Company type Tax rate Credit per $1 dividend
Standard companies (most ASX) 30% $0.4286
Base rate entities (small business) 25% $0.3333

Check your dividend statement to confirm which rate applies. Most large ASX-listed companies use the 30% rate.

Related insight

If the refund result surprised you

When do franking credits reduce tax vs create a cash refund?

See the actual refund rule, where the 45-day rule bites, and why the final answer depends on your full tax position — not just the dividend alone.

Read the franking credits explainer
FAQ
What is a franking credit?
A franking credit (also called imputation credit) represents tax the company has already paid on its profits. When you receive a franked dividend, you get credit for this tax. If your personal tax rate is lower than the company rate, you may get a refund of the excess.
How do I calculate the grossed-up dividend?
The grossed-up dividend is the cash dividend plus the franking credit. For a $100 fully franked dividend at 30%: $100 + ($100 × 30% ÷ 70%) = $100 + $42.86 = $142.86.
Can I get a franking credit refund?
Yes, if your marginal tax rate is lower than the company tax rate (30% or 25%), you'll receive the excess franking credit as a cash refund. This commonly happens for low-income earners, retirees, and those with taxable income under $45,000.
What is the 45-day holding rule?
If your total franking credits for the year exceed $5,000, you must hold shares "at risk" for at least 45 days (90 days for preference shares) around the ex-dividend date to claim the credits. This prevents dividend stripping.
What's the difference between 25% and 30% franking?
Most large Australian companies pay tax at 30% and frank dividends at this rate. Smaller "base rate entities" pay 25% company tax and can only frank at 25%. Check your dividend statement for the applicable rate.
Do I need to declare franked dividends?
Yes, you must declare the grossed-up dividend (cash + franking credit) as assessable income in your tax return. The franking credit is then applied as a tax offset. The ATO pre-fills most dividend information from share registries.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2025-26

Estimates franking credit tax impact and potential refund or top-up tax on dividends. Does not account for trust distributions, partnership income, dividend reinvestment plans, or the holding period rule for credits above $5,000.


Last updated 21 April 2026 Tax year 2025-26

Data sources: ATO (ato.gov.au), Services Australia

This tool is general information only, not financial advice.

Reviewed by AusTax Tools Editorial Desk

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