Franking credit calculator
Enter the amounts from an Australian company dividend statement, or estimate a fully or partly franked dividend. Compare assessable income and the offset with a transparent optional 2026-27 resident tax model.
Published by GrowThenDraw Editorial Team · Editorial policy · Methodology & sources
Enable the tax panel to estimate the dividend's assessment effect under the limited resident model.
Eligibility comparison
Arithmetic only — this calculator does not decide legal entitlement.
| Measure | Eligible | Not eligible |
|---|---|---|
| Cash dividend received | $900.00 | $900.00 |
| Assessable dividend income | $1,200.00 | $900.00 |
| Franking tax offset | $300.00 | $0.00 |
| Personal tax estimate | Enable above | Enable above |
Calculation audit
| Step | Eligible | Not eligible |
|---|---|---|
| Franked cash dividend | $700.00 | $700.00 |
| Unfranked cash dividend | $200.00 | $200.00 |
| Attached franking credit | $300.00 | Not claimable |
| Assessable dividend income | $1,200.00 | $900.00 |
| Franking tax offset | $300.00 | $0.00 |
Start with the dividend statement
The statement workflow is the most reliable starting point because it uses the franked amount, unfranked amount and attached credit actually reported by the company. The calculator does not replace those figures with an inferred company rate.
Estimate mode is useful before a statement exists. It calculates the credit on the franked cash portion using the selected 25% or 30% company rate, while keeping the unfranked cash separate.
Gross-up and tax offset are different steps
For an eligible resident individual, the cash dividend and attached franking credit are included in assessable income. The same credit then becomes a tax offset. This is why grossed-up income is higher than the cash received.
The optional personal estimate compares annual liability before and after the dividend, then applies the offset. A negative assessment effect is only a potential excess credit within this limited model, not a promised final refund.
Eligibility cannot be decided by a calculator
Holding-period, at-risk, related-payment and dividend-washing rules can affect whether a credit may be claimed. The page always shows eligible and not-eligible arithmetic without pretending to determine the legal answer.
The tax panel is limited to an adult Australian resident individual, FY2026-27 resident rates, LITO and either ordinary single/no-dependants Medicare or no Medicare. It is general information, not a tax return or personal advice.
Frequently asked questions
What is the formula for a franking credit?
For an estimate, multiply the franked cash dividend by the company rate divided by one minus that rate. At 30%, a $700 fully franked cash dividend has a $300 credit. Use the actual statement amount when available.
What is a grossed-up dividend?
For an eligible shareholder, it is the cash dividend plus the attached franking credit. It is the dividend amount included in assessable income before the franking tax offset is applied.
Does a franking credit guarantee a refund?
No. An eligible resident individual may receive excess refundable credits after relevant liabilities, but the final assessment depends on the complete tax return and legal entitlement. This calculator reports only a modelled assessment effect.
What if I cannot claim the franking credit?
The comparison shows a not-eligible scenario with the cash dividend included in assessable income and no franking offset. Confirm entitlement questions with the ATO or a registered tax agent.
Rules verified 13 August 2026 against official Australian sources:
- ATO: franked dividends and franking credits
- ATO: declaring shares and dividends
- Federal Register of Legislation: FY2026-27 resident tax rates
- Federal Register of Legislation: Low Income Tax Offset
- Federal Register of Legislation: Medicare levy law
Scope: direct Australian-company dividends for an adult Australian-resident individual. The optional FY2026-27 estimate includes resident rates, LITO and the selected narrow Medicare treatment. It excludes complete return interactions, family thresholds, SAPTO, Medicare levy surcharge, HELP, foreign income and credits, trusts, companies, super funds and entitlement tests. Educational estimate only; not personal financial or tax advice.