Franking Credit Calculator

Cash Dividend and Gross-Up

A franking credit is the tax credit attached to the franked part of a dividend. For an eligible Australian resident shareholder, the assessable grossed-up amount is the cash dividend plus that credit.

Enter the total dividend before any withholding. Multiply it by the franking percentage to find the franked portion. The remaining cash is the unfranked portion.

Calculate the credit by multiplying the franked portion by the company tax rate, then dividing by 100 minus that rate. Use percentages as whole numbers in this formula. At a 30% company rate, the multiplier is 30 divided by 70. At 25%, it is 25 divided by 75.

In this fictional example, an Australian resident shareholder receives a $700 dividend that is 50% franked at a 30% company tax rate. The franked portion is $350, with a $150 credit. The unfranked portion is $350 and the grossed-up dividend is $850.

Incorrect: add the $150 credit only to the $350 franked portion and report $500 as the total assessable dividend. Correct: add it to the full $700 dividend, giving $850.

The credit records tax already paid by the company. It does not increase the cash dividend. The Parliamentary Budget Office’s explanation of dividend imputation shows how the credit and cash fit together.

Checking the Statement

Compare the statement’s franked amount and unfranked amount with the two cash portions. Their sum must match the total dividend before withholding. Then compare the attached franking credit with the calculator’s credit.

Use the paying company’s tax rate for imputation purposes, not the shareholder’s marginal tax rate. A dividend reinvested into shares still needs the statement’s dividend amount. A net bank deposit can be lower after withholding or other deductions.

The calculator rounds displayed figures to cents after calculating at full precision. A positive amount below one cent shows as less than $0.01. A statement can use a rounded franking percentage, so reconcile its actual credit before changing a return.

The franking-credit and gross-up rules govern the amount and entitlement. Check the client’s residency and qualified-person status, including the holding-period and related-payments rules. Dividend washing and other integrity rules can also deny the credit.

A matching calculation establishes arithmetic only. If the client cannot claim the credit, the credit gross-up can also be excluded. Trust distributions, foreign-resident treatment and any refundable offset need their own assessment. This calculator does not calculate the shareholder’s tax or refund.

For entitlement and refunds, use the franking credits guide.

Total Credits Across Dividend Statements

To calculate total franking credits, check each dividend separately, then add the reconciled credits. Repeat the calculator for every statement belonging to the same shareholder and income year.

Franking credit = cash dividend × (franking percentage / 100) × company tax rate / (100 - company tax rate). Enter percentages as whole numbers, such as 50 and 30.

1. Create one workpaper row for each dividend. Record its statement reference, cash dividend before withholding, franking percentage and company tax rate for imputation purposes.
2. Enter that row’s inputs in the calculator. Record the calculated credit and grossed-up dividend beside the statement’s actual credit, and resolve any difference before totalling.
3. Repeat for every dividend, then add the reconciled credits and grossed-up amounts in separate columns. Keep each line’s percentage and imputation rate with it.
4. Check the totals against all source statements, including reinvested dividends. Count each distribution once if both individual advices and an annual statement cover it.

For the fictional $700 dividend, enter 50% franking and a 30% imputation rate. The calculator shows a $150.00 credit and an $850.00 grossed-up dividend.

Add a second fictional dividend of $900, 75% franked at a 25% imputation rate. Its credit is $225.00 and its grossed-up dividend is $1,125.00.

The two statements total $1,600 cash, $375 attached credits and $1,975 grossed-up dividends. Add the credits calculated at each rate. Applying one rate to the combined cash would lose the different treatment of the two dividends.

If a calculated line differs from its statement, check the entered percentage and imputation rate before accepting the total. Retain the actual statement amounts and the reason for any adjustment in your workpaper. An arithmetic total does not establish entitlement to claim any credit or refund.

Entered amounts stay on this page in your browser. The calculator sends no dividend figures to Tax Genie or the ATO and saves none in browser storage.