FRANKING CREDITS
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Franking Credit Formulas

How can I calculate Franking Credits?
We have provided examples on how to work out franking credits manually using formulas for both a fully franked and partially franked dividend.

Fully Franked Dividend Calculation
The formula to calculate franking credits (assuming they are 100% franked) is;

Franking Credits = (Dividend Amount / (1-Company Tax Rate)) – Dividend Amount
An example is below assuming a $70 dividend that is 100% franked;
Franking Credits = ($70 / (1 – 0.30)) – $70
= ($70 / 0.70) – $70
= $100 – $70
= $30
​
As the franking credits are worth $30 the total dividend grossed up including franking credits is $100.

What about partially franked?
To easy we do the same calculation but adjust the answer.  If the dividend above was only 50% franked we simply adjust the franking credit by the percentage.

Franking Credits at 100%  = $30
Franking Credits at 50%    = $30 * 0.5
= $15
In this partial franked example the grossed up dividend would only be $85 as the dividend was only 50% franked instead of 100% franked.

Do you have an Online Franking Credit Calculator I Can Use?
Yes, use our online franking credit calculator.
Disclaimer: The information contained in this website is factual in nature and has not taken into account your personal situation. Franking Credits accepts no responsibility with regard to any financial or taxation problems as a result of using this website or any linked external websites. All care has been taken in the compilation of information however we cannot guarantee the information is up to date with the latest taxation legislation. Investors or shareholders should conduct their own due diligence and contact a qualified taxation agent and or licensed financial planner regarding their personal situations. We can not provide any advice or guidance regarding your situation. Franking Credits may be associated with or receive payments from advertisers listed on the website.

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