Franking Credits Calculator Australia
Calculate the estimated tax impact of an Australian franked dividend. Use the credit on your dividend statement to see the gross-up, offset and potential excess credit or top-up tax.
The dividend amount paid to you (before any tax)
Use the statement amount where available—it is the amount reported to the ATO.
Enter the exact franking or imputation credit shown on your statement.
Your taxable income excluding this dividend
Used only to check the annual $5,000 holding-period threshold.
Enter dividend details to calculate your franking credits
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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.
An excess credit can arise when the franking offset is greater than the extra tax created by adding the grossed-up dividend to your assessable income. A flat marginal-rate shortcut is not reliable near thresholds because the dividend can cross tax brackets, reduce LITO or move through the Medicare levy low-income shade-in.
What this calculator does: compares estimated income tax after LITO and individual Medicare levy before and after the gross-up, then applies the entered franking credit. The result is an estimate of this dividend's effect—not a guaranteed ATO refund.
Sarah receives a $1,000 fully franked dividend from BHP. Her taxable income is $75,000.
Sarah pays an additional $28.57 in tax on her $1,000 cash dividend — an effective rate of 2.86% on the cash received.
If your total franking credits for the year exceed $5,000, you must satisfy the holding period rule:
| Company type | Tax rate | Credit per $1 dividend |
|---|---|---|
| Standard companies (most ASX) | 30% | $0.4286 |
| Base rate entities (small business) | 25% | $0.3333 |
Use the actual credit on your dividend statement whenever possible. The 25% or 30% selector is only for estimating a credit when the statement amount is unavailable.
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 explainerWhat is a franking credit?
How do I calculate the grossed-up dividend?
Can I get a franking credit refund?
What is the 45-day holding rule?
What's the difference between 25% and 30% franking?
Do I need to declare franked dividends?
Tax Accuracy & Sources
Estimates an eligible resident individual's incremental income tax after LITO and individual Medicare levy, then applies the entered franking credit. Family Medicare thresholds, SAPTO, trust and partnership distributions, other offsets, debts, related-payment and dividend-washing rules are not modelled.