How to use the franking credits calculator
- 1 Enter the cash dividend you received.
- 2 Enter the franking percentage shown on your statement.
- 3 Choose the company tax rate, 30% or 25%.
- 4 Enter your other taxable income and read the result.
Worked example
An investor with $40,000 of other income receives a $7,000 fully franked dividend. The franking credit is $3,000, so $10,000 is added to income. Tax and Medicare on it are $2,775, less than the credit, so they get a refund of about $225.
The 45-day rule and refunds
- 45-day rule: you must hold shares at risk for at least 45 days (90 for preference shares) around the dividend to claim the credit, unless your total credits are under $5,000 a year.
- Refunds: credits above your tax are refunded, which suits retirees and low-income investors.
- Non-lodgers can apply for a refund of franking credits without lodging a full tax return.
- Super funds in pension phase pay no tax on earnings, so they receive franking credits as refunds.
See the company side with the Company Tax Calculator. Selling the shares? Use the Capital Gains Tax Calculator.
Features
Franking credit
Tax already paid by the company.
Grossed-up dividend
Cash dividend plus the credit, which is taxable.
Refund of excess
Credits above your tax are refunded.
Partial franking
Works for any franking percentage.
When to use it
Share investors
Know the tax on dividends. See the company side with the Company Tax Calculator.
Retirees
See refunds of excess credits. Selling shares? See the Capital Gains Tax Calculator.
Low income earners
Check refunds on dividend income. Check your rate with the Income Tax Calculator.
Comparing shares
Compare fully franked and unfranked yields. Compare with the Term Deposit Calculator.
Related Tax tasks
Frequently asked questions
What are franking credits?
Credits for tax a company has already paid on its profits. When you receive a franked dividend, you include the credit in your income and then get it back as a tax offset.
How is the franking credit worked out?
Credit equals the dividend times the franking percentage times the company tax rate divided by one minus that rate. A $70 fully franked dividend at 30% carries a $30 credit.
What is a grossed-up dividend?
The cash dividend plus the franking credit. This total is added to your taxable income.
Do I get a refund of excess credits?
Yes. If your credits are more than the tax you owe, individuals and super funds can get the excess refunded.
What is the 45-day rule?
To claim credits you generally need to hold the shares at risk for at least 45 days, not counting the days of buying and selling, unless your total credits are $5,000 or less.
What does fully franked mean?
The company has paid tax at the full company rate on the profits used to pay the dividend.
What about the 25% rate?
Small base rate entities pay 25% tax, so their fully franked dividends carry smaller credits.
Are unfranked dividends taxed?
Yes. They are taxed at your marginal rate with no credit.
How do I claim?
Your dividend statements show the franking credits, and they are usually prefilled in myTax.
Do non-lodgers get refunds?
Yes. If you do not need to lodge a return, you can apply for a refund of franking credits with a separate form.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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