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Australia estimate

Franking Credits Calculator

Calculate the franking credit on Australian dividends, your grossed-up income, and whether you receive a tax refund or owe additional tax at your marginal rate.

Franking Credits Calculator · AUSuperannuation & Retirement

Results update when you select Calculate.

Example result based on the prefilled values.

Franking Credit

A$3,000.00

Grossed-Up Dividend

A$10,000.00

Tax Refund

A$0.00

Additional Tax Payable

A$450.00

Net After-Tax Income

A$6,550.00

Effective Yield Multiplier

93.60%

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When to use this calculator

  • Before choosing between saving, investing, or increasing your monthly contribution.
  • When you want to compare best-case, base-case, and cautious return assumptions.
  • When you need a quick projection before making a longer-term portfolio decision.
  • When you are deciding how many more years of contributions are needed to reach a specific target balance.
  • When you want to see whether starting earlier versus contributing more each month produces a bigger outcome.

A realistic Australia planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Cash Dividend Received (A$)

7000

Franking Percentage (%)

35

Marginal Tax Rate (incl. Medicare)

0% (below tax-free threshold)

Receiving in Super Fund?

No — personal name

After entering these figures, review franking credit, grossed-up dividend and tax refund together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.

How to read your results

Franking Credit

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Grossed-Up Dividend

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Tax Refund

Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.

Additional Tax Payable

Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.

Net After-Tax Income

Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.

Effective Yield Multiplier

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Method & assumptionsAuthoritative sources

Australia’s dividend imputation system allows companies to attach franking credits to dividends, representing the 30% corporate income tax already paid on those profits. This calculator grosses up your cash dividend by the applicable franking credit (computed as cash × franking% × 30/70) and then applies the relevant tax rate to determine whether you owe additional tax or receive a refund. The net after-tax income figure represents the economic value of the dividend after all Australian income tax is accounted for, and the effective yield multiplier shows how the franking credit amplifies the real return relative to the cash dividend alone.

The calculator uses the standard 30% corporate tax rate applicable to most large ASX-listed companies. Base-rate entities — companies with aggregated turnover below $50 million — may be franked at a lower 25% corporate rate from 2021/22 onwards, which would reduce the franking credit per dollar of dividend. Super fund tax rates reflect the standard 15% accumulation rate and 0% pension phase rate; SMSFs or industry funds with specific investment strategies may have different effective rates. This tool is intended for general education only and does not constitute tax advice.

Common mistakes

  • !Using an assumption that is not supported by a current local quote, bill, statement or official source.
  • !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
  • !Mixing monthly and annual inputs without converting them consistently.
  • !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
  • !Testing only one scenario instead of checking how a cautious assumption changes the result.

What to do next

  • Run a second scenario with a cautious assumption so you can see the downside clearly.
  • Compare the result with the related calculators below before making a decision.
  • Check current local rules, eligibility and provider terms before applying or committing money.
  • Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
  • Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.

Frequently asked

Franking credits (also called imputation credits) represent the corporate income tax a company has already paid on its profits before distributing dividends. Under Australia’s dividend imputation system, shareholders receive a credit for this prepaid tax and include the grossed-up dividend in their assessable income. If your personal tax rate is lower than the 30% corporate rate, the ATO refunds the difference. If your rate is higher, you pay the top-up. This system prevents the same profit from being taxed twice — once at the company level and again in the investor’s hands.

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