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Dividend Franking Credit Calculator

This dividend franking credit calculator will estimate the amount of Franking Credit (Imputation Credit) on your cash dividend in Australia.

According to ATO, "Franking credits arise for shareholders when certain Australian-resident companies pay income tax on their taxable income and distribute their after-tax profits by way of franked dividends. These franked dividends have franking credits attached. Franked dividends are received either directly as a shareholder or indirectly as a beneficiary of a trust."

This simple to use dividend franking credit calculator not only estimates the Franking Credit it also calcualtes your Taxable Dividend Income, the Tax Payable before Franking Credit, the Tax Owed or Rebated after Franking Credit, and the After Tax Dividend Income.

Dividend Information
Dividend Per Share:
 $
Number of Shares Held:
 #
Franking Percentage:
 %
Personal Tax Rate:  %
 

Calculator assumptions

(1) The Personal Tax Rate does not include Medicare Levy and Temporary Budget Repair Levy.

(2) Rounding: The value is rounded to at least the nearer cent where applicable.

The franking credits on your dividends can be calculated using this formula:

Franking Credits = Dividend * ( 3 / 7) * Franking Percentage

To understand franking credits better you can visit ATO Franking credits section.

Learn how franking credits affect your tax

The table below shows how the franking credits affect the after tax dividend income of 5 investors on different personal tax rates. They all receive a $700 of fully franked dividend with $300 of franking credits. This means they will have the same $1,000 of taxable income. However, from the table below you can see that their after tax dividend incomes are all different!

ItemInvestor 1Investor 2Investor 3Investor 4Investor 5

Dividend

$700

$700

$700

$700

$700

Franking Credit

$300

$300

$300

$300

$300

Taxable Dividend Income

$1,000

$1,000

$1,000

$1,000

$1,000

Personal tax rate

0%

19%

32.5%

37%

45%

Tax Payable before Franking Credit

$0

$190

$325

$370

$450

Tax owed (refunded) after franking credit

($300)

($110)

$25

$70

$150

After Tax Dividend Income

$1,000

$810

$675

$630

$550

Basically if your personal tax rate is higher than 30%, you need to make up the difference between it and the 30% tax the company has already paid. If your personal tax rate is lower than 30%, the difference between it and the 30% tax will be refunded by ATO if you don’t have any other taxable income or it will be used to offset the tax on your other taxable income.