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Franking Credits Calculator Australia — Dividend Tax Offset 2026

Last updated: Reviewed by Sarah Mitchell, CFA
**Franking credits** (imputation credits) are tax credits attached to dividends paid by Australian companies that have already paid 30% corporate tax. Shareholders include the grossed-up dividend in their income and use the franking credit to offset their income tax — preventing double taxation. For a fully franked $700 dividend, the attached franking credit is $300 (30/70 of the cash dividend). The grossed-up income is $1,000. At a 32% marginal rate, net additional tax is only $20 — making fully franked Australian shares highly tax-efficient. Retirees and SMSFs in pension phase can receive the full $300 credit as a cash refund.
Franking Credits Calculator Australia
The actual cash dividend paid (not grossed up)
100% = fully franked; 0% = unfranked
Your top marginal rate including Medicare levy (e.g. 32% = 30% + 2%)
Franking Credit Value —
Grossed-Up Dividend —
Tax on Grossed-Up Dividend —
Tax Offset from Franking Credits —
Net Tax After Offset —
After-Tax Dividend Income —
View Year-by-Year Breakdown
Year-by-year growth breakdown

Real-World Examples — 2026

$700 fully franked dividend, 32% marginal rate

CBA pays a $700 fully franked dividend. Franking credit: $700 × 30/70 = $300. Grossed-up dividend: $1,000. Tax on $1,000 at 32% marginal rate: $320. Franking credit offset: $300. Net additional tax: $20. After-tax income from the dividend: $680 ($700 cash − $20 additional tax).

$700 fully franked dividend, 0% rate (retiree SMSF in pension phase)

A self-managed super fund in full pension phase (0% tax). Grossed-up dividend: $1,000. Tax at 0%: $0. Franking credit: $300 fully refundable. Total after-tax income: $1,000 ($700 cash + $300 refund). Fully franked dividends provide a 42.9% bonus to the cash dividend for 0% tax entities.

Frequently Asked Questions

Franking credits (also called imputation credits) are tax credits attached to dividends paid by Australian companies. When a company pays tax at the 30% corporate tax rate, it can pass those credits through to shareholders. Shareholders include the grossed-up dividend in their assessable income but use the franking credit to offset their income tax liability — preventing double taxation on company profits.

Franking credit = (Cash dividend × Franking %) × Company tax rate / (1 − Company tax rate). For a $700 fully franked dividend from a company paying 30% tax: Franking credit = $700 × 100% × 30% / 70% = $300. The grossed-up dividend is $700 + $300 = $1,000. This $1,000 is included in your assessable income.

Yes. Since 2000, unused franking credits are refundable in Australia. If your grossed-up dividend income does not result in enough tax liability to absorb the franking credits, the ATO will refund the excess credits. This is particularly valuable for low-income earners, retirees, and self-managed super funds (SMSFs) in pension phase, which pay 0% tax and can claim full refunds of franking credits.

No. Only Australian companies that have paid Australian corporate tax can attach franking credits to dividends. Foreign companies, Australian companies with significant offshore earnings, companies in tax losses, and growth companies that pay no dividends will pay unfranked or partially franked dividends. Large Australian banks (CBA, ANZ, NAB, Westpac), BHP, and many ASX-listed companies pay fully franked dividends.

You must include both the cash dividend and the franking credit in your assessable income on your tax return. Your broker or share registry will provide an Annual Tax Statement showing dividends paid and franking credits attached. In myTax, the ATO pre-fills dividend and franking credit data from share registries for most listed shares. You then claim the franking credits as a tax offset in the same return.