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Franking Credits Calculator

Work out the tax impact of fully or partially franked dividends and whether you are entitled to a franking credit refund for 2025-26.

Inputs

AUD
%
AUD
Corporate tax rate assumed 30% (large company). For base-rate entities (small companies with aggregated turnover < $50M), the franking rate is 25%. Enter your franking percentage accordingly.

Net Tax Position on Dividend

Tax payable / refund on dividend income
$0

How dividend imputation works

Australia's dividend imputation system prevents double taxation of company profits. When a company pays tax at 30% and then distributes a dividend, it attaches franking credits representing the tax already paid. Shareholders include both the cash dividend and the franking credit in their taxable income, then offset the credit against their own tax bill.

The grossed-up dividend (cash + franking credit) is included in your assessable income and taxed at your marginal rate. If your marginal rate is lower than the corporate rate, the excess franking credits are refunded to you. If your marginal rate is higher, you pay the difference. If your income is below the tax-free threshold, all franking credits may be refunded.

Partially franked dividends carry a proportional credit. An unfranked dividend has no credit attached.

FAQ

Can I get a cash refund of franking credits?
Yes — if your franking credit exceeds your total tax liability, the ATO will refund the difference. This commonly applies to retirees and low-income earners whose marginal rate is below 30%.
What is a fully franked dividend?
A fully franked dividend means the company has paid corporate tax (30%) on the entire profit that funded the dividend. Each dollar of cash dividend carries 30/70 cents of franking credit ($0.4286 per dollar).
What is the franking rate for small companies?
Base-rate entities (aggregated turnover under $50M) pay a reduced corporate tax rate of 25%. Their franking rate is 25%, and the franking credit per dollar of cash dividend is 25/75 = $0.3333.
Do superannuation funds benefit from franking credits?
Yes. Super funds in accumulation phase pay tax at 15% and receive excess franking credits as a refund. Super funds in pension (retirement) phase are tax-exempt and receive a full refund of all franking credits.