Franking Credit Calculator
Work out the franking credits on your dividends, the gross-up added to your taxable income, and your net refund or top-up tax at 2025-26 rates.
Your Dividend and Income
The dividend amount actually paid to you (before any franking credit gross-up).
Shown on your dividend statement. Most ASX blue-chip dividends are 100% (fully) franked.
Salary and other taxable income for the year — the grossed-up dividend is taxed on top of this.
Uses FY 2025-26 (1 July 2025 – 30 June 2026) resident tax rates, the low income tax offset and the Medicare levy (including the low-income shade-in). Assumes you are an Australian resident individual.
Results
Franking credit
$700.00 dividend × 100% franked × 30/70 gross-up
Grossed-up dividend
Added to your assessable income
Tax on grossed-up amount
32.0% at your marginal rates incl. Medicare levy
Top-up tax to pay
Tax on the grossed-up dividend exceeds the franking credit
After-tax value of your dividend
Cash dividend minus the net top-up tax
Outcome by marginal tax bracket (same dividend)
| Taxable income | Rate* | Net outcome | After-tax value |
|---|---|---|---|
| $0 – $18,200 | 0% | +$300.00 | $1,000.00 |
| $18,201 – $45,000 | 18% | +$120.00 | $820.00 |
| $45,001 – $135,000 | 32% | −$20.00 | $680.00 |
| $135,001 – $190,000 | 39% | −$90.00 | $610.00 |
| $190,001 and over | 47% | −$170.00 | $530.00 |
*Marginal rate plus 2% Medicare levy (none in the tax-free bracket). Illustrative — assumes the whole grossed-up dividend falls in one bracket.
45-day holding rule: to claim franking credits you generally must hold the shares “at risk” for at least 45 days (90 for certain preference shares), not counting the purchase and sale days. The small shareholder exemption waives this rule if your total franking credits for the year are under $5,000.
Estimate only. Not modelled: SAPTO and other tax offsets, the Medicare levy surcharge, the related payments and dividend washing rules, and trust or super-fund holding structures (super funds pay 15%/0% and companies cannot get cash refunds).
Guide & Information
Overview
Make informed financial decisions with our Franking Credit Calculator designed for Australia residents.
💡 Tips
- •Compare different scenarios before deciding
- •Factor in all costs, not just the obvious ones
- •Review calculations periodically as rates change
Why Use This Franking Credit Calculator
Proper financial planning is crucial for achieving your long-term goals.
Regulations: Complies with current Australia regulations.
- • Loan amount: $100,000
- • Interest rates vary by institution
- • Terms typically range from 12-360 months
Related Calculators
Frequently Asked Questions
How accurate is this Franking Credit Calculator?
Our calculator uses standard financial formulas and current market rates for Australia to provide accurate estimates.
What factors affect my calculation?
Key factors include principal amount, interest rates, time period, and any specific regulations in Australia.
Should I consult a financial advisor?
While this calculator provides accurate estimates, complex financial decisions benefit from professional advice.
Frequently asked questions
How are franking credits calculated?
Franking credit = dividend × franking percentage × company tax rate ÷ (100% − company tax rate). For most ASX companies taxed at 30% that is the 30/70 gross-up: a $700 fully franked dividend carries a $300 credit, so $1,000 is added to your taxable income and $300 offsets your tax. Base rate entities (turnover under $50 million) are taxed at 25%, giving a 25/75 gross-up instead.
Are franking credits refundable?
Yes — for Australian resident individuals and super funds the franking offset is fully refundable. If your credits exceed your total tax bill, the ATO refunds the difference in cash. That is why low-income retirees holding fully franked shares often receive a cheque at tax time. Companies cannot get cash refunds; their excess credits convert into carried-forward tax losses.
What is the 45-day holding rule?
To claim franking credits you must hold the shares "at risk" for at least 45 days (90 days for certain preference shares), not counting the days you buy and sell. The small shareholder exemption waives this rule if your total franking credits for the year are under $5,000 — roughly $11,666 of fully franked dividends at the 30% rate — though the related payments rule still applies.
Do I pay tax on fully franked dividends?
It depends on your marginal rate. A fully franked dividend from a 30%-taxed company is already taxed at 30%, so if your marginal rate plus the 2% Medicare levy is higher you pay the difference as top-up tax (17% of the grossed-up amount at the top 45% rate), and if it is lower you get a refund. In the 30% bracket you only pay the 2% Medicare levy.
What is the difference between 100% franked and partially franked dividends?
The franking percentage shows how much of the company tax has been attached to the dividend. A 50% franked $700 dividend carries half the credit of a fully franked one ($150 instead of $300), and the unfranked half is simply taxed as ordinary income with no offset. Your dividend statement shows the franked amount, unfranked amount and franking credit.
How do I claim franking credits if I don’t lodge a tax return?
If your income is below the tax-free threshold and you don’t need to lodge, you can still get your credits back using the ATO’s "refund of franking credits" application — online via myGov, by phone, or on a short paper form. Credits from shares held through trusts and managed funds appear on your annual tax statement and are claimed the same way.