Dividend Franking Credits Calculator
ASX Dividend Imputation • 30% Company Tax Gross-Up • ATO Tax Offsets & Cash Refunds
Dividend & Tax Parameters
Enter your cash dividend payment and franking percentage.
Net tax adjustment: $200 top-up tax payable at your 32% marginal rate.
Imputation Accounting Reconciliation
| Component | Statutory Formula | Amount |
|---|---|---|
| 1. Cash Dividend | Net dividend distributed to shareholder | $7,000.00 |
| 2. Franking Credit | Cash × (30 / 70) × Franking% | +$3,000.00 |
| 3. Grossed-Up Dividend | Cash + Franking Credit (Assessable Income) | $10,000.00 |
| 4. Individual Tax Liability | Grossed-Up × (Marginal + 2% Medicare) | -$3,200.00 |
| 5. Net Tax Payable / (Refund) | Tax Liability minus Franking Credit Offset | $200.00 Payable |
How Dividend Imputation Works in Australia
Eliminating Double Taxation
In many countries (like the US), corporate profits are taxed twice: once at the corporate level, and again when paid to shareholders as dividends. Under Australia’s dividend imputation system introduced in 1987, companies attach a franking credit to dividends representing the company tax already paid to the ATO.
Cash Refunds for Low-Bracket Investors & Super Funds
If your individual marginal tax rate (e.g. 16% or 0%) is lower than the 30% company tax rate, or if you hold your shares inside a tax-free retirement pension phase superannuation fund, you don't just pay zero tax — the ATO actually sends you a cash tax refund for the unused franking credits!
Next Steps & Related Australian Calculators
Strengthen your financial plan with these interconnected statutory computational models.
Capital Gains Tax (CGT)
Contrast dividend yield returns against long-term share capital gains.
Paycheck & Income Tax (PAYG)
Determine whether your marginal tax rate earns an ATO cash refund.
Australian FIRE & Super Bridge
Incorporate ASX 200 fully franked dividends into early retirement.
Account-Based Pension Drawdown
100% tax-free franking credit cash refunds in pension phase.