Free Calculator
Franking Credit Calculator
Work out the franking (imputation) credit attached to an Australian franked dividend, the grossed-up amount you declare, and whether you'll pay tax or get a refund. Enter your dividend and tax details below.
How this is calculated ▸
- Gross-up — franking credit = cash dividend × franked % × (company tax rate ÷ (1 − company tax rate)). At 30% a fully franked $70 dividend carries $30 of credits.
- Grossed-up income — the cash dividend plus the franking credit; this is what you declare.
- Tax payable or refund — tax on the grossed-up income at your marginal rate, less the franking credit (a refundable offset). A negative result is a refund.
- What's not modelled — the Medicare levy, the 45-day holding rule, and the small-shareholder exemption. Verify with a registered tax agent before lodging.
Franking credit
$857
Grossed-up income
$2,857
Tax before offset
$914
Tax on this dividend
$57
Net cash: $1,943
How the grossed-up income breaks down
This is an estimate. Metrifly attaches franking credits to every dividend automatically and rolls them into your income and tax reports.
How franking credits work
When an Australian company pays tax on its profits and then distributes those profits as a franked dividend, it passes on a credit for the tax already paid. That credit is the franking (imputation) credit. You declare the cash dividend plus the credit as income — the grossed-up amount — then use the credit to reduce your own tax. The credit is refundable, so if your marginal rate is below the company rate, you can receive the difference back.
Who tends to get a refund
Because the credit is refundable, investors on a marginal rate below 30% — including many retirees and SMSFs in pension phase (0%) — often receive cash back. Investors above 30% top up the difference. This is why franked dividends are central to Australian dividend and income investing.
Partly franked dividends
Not every dividend is fully franked. A 70% franked dividend carries only 70% of the credit a fully franked one would — the calculator above handles any franked percentage. Across a real portfolio, franking varies by holding and by pay date, which is why Metrifly tracks franking automatically and feeds it into your ATO-ready tax reports.
Where the numbers go at tax time
Your dividend statement usually separates the cash dividend, franked amount, unfranked amount and franking credit. In your tax return, you declare the dividend income and the franking credit rather than just the cash received. Metrifly's income report keeps those lines separate so you can reconcile the franked/unfranked split against broker, share registry and ETF statements before lodging.
Eligibility rules this calculator does not decide
To claim franking credits you generally need to satisfy the 45-day holding-period rule (90 days for certain preference shares), unless the small-shareholder exemption applies. The ATO describes the exemption as applying where your total franking credit entitlement is $5,000 or less for the year. This calculator estimates the maths from the figures you enter; it does not decide whether you are eligible to claim a credit. Check the ATO guidance and verify your situation with a registered tax agent.
FAQ
Questions about franking credits
What is a franking credit?
A franking credit (or imputation credit) is the company tax already paid on a franked dividend. It's attached to the dividend so you aren't taxed twice — you use it to offset your own tax, and any excess can be refunded.
How are franking credits calculated?
For a fully franked dividend: franking credit = dividend × (company tax rate ÷ (1 − company tax rate)). At the 30% company rate, a $70 fully franked dividend carries $30 of franking credits and grosses up to $100 of taxable income. Partially franked dividends scale by the franked percentage.
Can I get franking credits refunded?
Yes — franking credits are a refundable tax offset for eligible Australian residents. If your credits are more than the tax on your grossed-up income, the excess is refunded. The 45-day holding rule and other eligibility rules can apply, so check with a registered tax agent.
Is this calculator accurate for my situation?
It's an estimate from the inputs you enter using standard imputation rules. It doesn't decide whether you're eligible to claim the credit, and it doesn't model the Medicare levy, the 45-day holding rule, the small-shareholder exemption, or the rest of your return. Verify with a registered tax agent before lodging.
Want franking credits calculated automatically across your whole portfolio? See the Metrifly Dividend Tracker →