Dividend Tax Estimator (Franked/Unfranked) (Australia)

Understanding Franked & Unfranked Dividend Tax in Australia

In Australia, companies pay dividends to shareholders from their profits. These dividends can be franked or unfranked. Franked dividends come with a tax credit (franking credit) because the company has already paid corporate tax on that profit. This prevents double taxation for the investor.

What is a Franked Dividend?

• It includes a franking credit — a pre-paid tax by the company.
• Added to your income but credited toward your tax bill.
• May result in tax refunds for low-income earners.

What is an Unfranked Dividend?

• No franking credit is attached.
• Taxed at your full marginal tax rate.
• No corporate tax has been paid on it.

Gross-Up and Tax Offset

Franked dividends are grossed up (dividend + franking credit) and included in your assessable income. You then apply your tax rate to that gross amount and subtract the franking credit from your tax due.

Tax Scenarios

• High-income earners may still owe some tax after the credit.
• Middle-income earners often break even or owe very little.
• Low-income earners may get a refund of unused credits.

ATO Reporting Rules

You must declare all dividend income, whether franked or unfranked. Use dividend statements from your shares or ETFs to calculate the exact amounts. The Australian Taxation Office pre-fills many dividend details into your tax return.

Franking Credit Refunds

If your franking credits exceed your total tax liability, you can receive a refund — this is especially beneficial for retirees and self-managed super funds (SMSFs).

Disclaimer

This calculator is for estimation purposes only. Always confirm your figures with your accountant or through the official ATO guidelines.