Dividend & Franking

Dividend & Franking Credits Calculator

Calculate grossed-up dividend income, franking credit offsets, and whether you receive a tax refund or pay top-up tax.

Other Taxable Income

Used to determine your marginal tax rate

30.0%

Marginal Rate

35.4%

Effective (on divs)

Cash Dividend ($)

Quantity (shares)

Unit Price ($)

Franking %

Cash Dividend ($)

Quantity (shares)

Unit Price ($)

Franking %

Cash Dividend ($)

Quantity (shares)

Unit Price ($)

Franking %

$63,215

After-Tax Income

$7,785

Top-Up Tax Payable

$71,000

Cash Dividends

$26,893

Franking Credits

$97,893

Grossed-Up Income

Your tax rate (35.4%) is above the company tax rate (30%). You pay $7,785 top-up tax on your dividends, but the $26,893 franking credit still offsets tax already paid by the company.

Per-Holding Breakdown

Holding	Cash Div	Franking	Grossed-Up	Tax / Refund	After-Tax	Net Yield
BHP Group (BHP)	$26,500.00	$11,357.14	$37,857.14	−$2,053.60	$24,446.40	514.7%
Commonwealth Bank (CBA)	$11,500.00	$4,928.57	$16,428.57	−$891.18	$10,608.82	143.4%
Vanguard Australian ETF (VAS)	$33,000.00	$10,607.14	$43,607.14	−$4,840.51	$28,159.49	139.4%
Total	$71,000	$26,893	$97,893	−$7,785	$63,215	—

Income Distribution

Holdings Comparison

What Your Dividends Return by Investor Type

Investor Type	Tax Rate	Net Tax / Refund	After-Tax Income
SMSF (pension)	0.0%	+$26,893	$97,893
SMSF (accumulation)	15.0%	+$12,209	$83,209
Individual (35.4%)	35.4%	−$7,785	$63,215
Company (30%)	30.0%	−$2,475	$68,525

How Franking Credits Work in Australia

Australia's dividend imputation system prevents double taxation. When a company pays corporate tax (30%) and then distributes profits as dividends, shareholders receive franking credits — representing the tax already paid by the company on their behalf.

The grossed-up dividend is the cash dividend plus the franking credit. This is the amount included in your assessable income, but you receive an offset for the franking credit against your tax bill.

The key benefit: if your marginal tax rate is below 30%, you receive the excess franking credits as a cash refund. This is why SMSFs in pension phase (0% tax) and low-income investors can receive significant cash refunds from fully-franked Australian shares.

Franking Credits by Investor Type

SMSF (pension phase, 0% tax): Receives the full 30% franking credit as a cash refund — making fully-franked Australian shares exceptionally tax-effective in this structure.
SMSF (accumulation, 15% tax): Half the franking credit offsets tax, the other half is refunded. Net tax on fully-franked dividends is effectively 0% or even negative.
Low-income individuals: Anyone with a tax rate below 30% benefits — the excess franking credit is refunded via your tax return.
High-income individuals (45% marginal): Pay 15% top-up tax on fully-franked dividends (45% − 30% franking). Still better than unfranked dividends taxed at 45%.
Non-residents: Cannot use franking credits — dividends are subject to 15–30% withholding tax depending on the tax treaty.