Franking Credits Calculator
Your Refund or Top-Up Tax
Work out the franking credit on an Australian dividend, the grossed-up income, and whether it leaves you with a refund or extra tax to pay, for individuals and super funds in accumulation or pension phase.
Read the full answer — method, rates and figures
Quick answer: A fully franked dividend from a company paying 30% tax carries a franking credit of 3/7 of the cash amount: a $10,000 dividend comes with $4,286 of credits. You declare the dividend plus the credit ($14,286) as income, pay tax on it at your own rates, and the credit is subtracted from the bill.
If the credit is more than your tax, the ATO refunds the excess after your tax and Medicare levy are covered. So on FY2025-26 rates a retiree whose only income is $20,000 of fully franked dividends gets $7,556 refunded, while a $200,000 earner pays $2,429 more tax on a $10,000 dividend.
In super, an accumulation fund pays 15% and keeps $2,143 of credits back per $10,000; in pension phase the whole $4,286 is refunded. Once your credits for the year reach $5,000 (about $11,667 of fully franked dividends at 30%), you must have held the shares for 45 days to claim them.
Source: ATO.
Do franking credits give you a refund?
Yes, whenever they are more than your tax. On FY2025-26 rates, someone whose only income is $20,000 of fully franked dividends pays $1,015 of tax against $8,571 of credits and gets $7,556 back. A $200,000 earner pays $2,429 extra on a $10,000 dividend, because their rate is above the company's 30%.
Who receives the dividend?
Franking credit
$4,286
Grossed-up income
$14,286
Extra tax to pay
$386
Dividend after tax
$9,614
The dividend adds $4,671 of tax at your rates (32.0% on the next dollar, including Medicare and any offset taper) and brings $4,286 of credits, so it leaves you $386 extra tax.
Your franking credits for the year come to $4,286, under $5,000, so the small shareholder exemption means the 45-day holding rule does not apply to you (the related payments rule still does).
Save your franking credits
Track your shares, dividends and super in one place, and see the income add up each year.
Franking credit
$4,286
Grossed-up income
$14,286
Extra tax to pay
$386
Dividend after tax
$9,614
Refund or extra tax on a $10,000 fully franked dividend, by income
| Other income | Marginal rate | Tax (+) / back (−) |
|---|---|---|
| $0 | 0.0% | −$4,286 |
| $18,200 | 26.0% | −$2,253 |
| $30,000 | 23.0% | −$974 |
| $45,000 | 33.5% | +$500 |
| $60,000 | 32.0% | +$386 |
| $90,000 | 32.0% | +$286 |
| $135,000 | 39.0% | +$1,286 |
| $190,000 | 47.0% | +$2,429 |
| $250,000 | 47.0% | +$2,429 |
FY2025-26 resident rates with LITO and the Medicare levy, 30% company rate. Marginal rate = the rate on the next dollar once the dividend is added, including Medicare and the LITO taper. A minus sign ("back") means the credit is larger than the tax the dividend adds: it reduces tax on your other income or, if it exceeds your whole bill, is refunded.
Franking credits change your total tax for the year, so check the whole picture in the income tax calculator.
Retirees drawing a pension from super get the full credit back. Model the pension itself with the SMSF pension phase calculator, and if your balance is over $3 million, see what Division 296 adds with the Division 296 calculator.
New to imputation? The franking credits explainer covers how the system works.
Last reviewed 13 October 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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Australia's dividend imputation system stops company profits being taxed twice. The company pays tax, then attaches that tax to the dividend as a franking credit. You add the credit back to the dividend (the “gross-up”), pay tax on the total at your own rates, and subtract the credit. If your rate is below the company rate, the difference comes back to you; if it is above, you pay the gap.
Individual tax here uses the FY2025-26 resident rates, the low income tax offset and the Medicare levy with its low-income shade-in, the same engine as the income tax calculator. It does not model the Medicare levy surcharge, HELP repayments, the seniors and pensioners tax offset or family Medicare thresholds.
Sources: ATO — “Allocating franking credits” (maximum credit formula), “Refunding excess franking credits”, “Refund of franking credits for individuals” (refunds after tax and Medicare, the 45-day holding rule and the $5,000 small shareholder exemption), “How SMSFs are taxed” (15% fund rate, exempt current pension income); Income Tax Rates Act 1986 s 23(2) (30% / 25% company rates). Read 22 September 2026.
How to use this calculator
- Choose who receives the dividend: you personally, a super fund in accumulation, or a super fund paying a pension.
- Enter the cash dividend and how much of it is franked (100% for fully franked). Your dividend statement shows both.
- Pick the company tax rate the dividend was franked at: 30%, or 25% for a smaller base rate entity.
- For an individual, enter your other taxable income and the tax year (2025-26 is the return being lodged now); add any other franking credits you have this year to check the 45-day rule.
- Read the franking credit, the grossed-up income, the tax or refund, and what the dividend is worth after tax.
❓ Frequently Asked Questions
How do I calculate franking credits?
Franking credit = cash dividend × franked % × (company tax rate ÷ (1 − company tax rate)). At a 30% company rate that is 3/7 of a fully franked dividend ($10,000 carries $4,286); at the 25% base rate entity rate it is 1/3.
This is the ATO's maximum-franking-credit formula; your dividend statement shows the exact figure.
Do I get a refund of franking credits if I don't pay tax?
Yes, if you are an Australian resident individual or a complying super fund. The ATO applies your credits against your tax and Medicare levy first and refunds whatever is left.
A retiree whose only income is $20,000 of fully franked dividends gets $7,556 back on FY2025-26 rates. If you don't need to lodge a return, you can apply for the refund separately.
Companies cannot get a refund; their excess credits become a tax loss.
What is the 45-day rule for franking credits?
To claim franking credits you must hold the shares "at risk" for at least 45 days (90 for preference shares), not counting the days you buy and sell. For individuals it only applies once your franking credits for the year total $5,000 or more, which the ATO says is roughly $11,667 of fully franked dividends from 30% companies or $15,000 from 25% companies.
Above that line you cannot cap your claim at $5,000: shares that fail the rule lose their credits entirely.
Why does my dividend carry a 25% franking credit instead of 30%?
Smaller companies that are base rate entities (aggregated turnover under $50 million and no more than 80% passive income) pay 25% company tax and frank their dividends at 25%. Their fully franked dividends carry a credit of 1/3 of the cash amount rather than 3/7.
Your dividend statement shows which rate applied.
How are franking credits treated in super?
A complying super fund includes the grossed-up dividend in its income, pays 15% on it, and has the credit refunded if it exceeds the tax. On a $10,000 fully franked dividend an accumulation fund pays $2,143 and gets $2,143 back.
Income from assets supporting a retirement-phase pension is exempt, so a pension-phase fund gets the whole $4,286 refunded. Super funds should confirm the holding-period rules with their administrator.
Are unfranked dividends worse?
Not necessarily worse, just taxed differently. An unfranked dividend carries no credit, so the whole amount is taxed at your rate with nothing to offset it.
For a high-income earner a fully franked dividend is taxed at roughly the gap between their rate and the company rate; for a low-income earner or a pension-phase fund, franked dividends can be worth more than their cash amount because the credit is refunded.
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