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Tax on Dividends Calculator

Estimate the tax on your investment income in Australia.

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Understanding Dividend Tax in Australia

Franking Credits (Imputation Credits)

When an Australian company pays tax on its profits, it can pass on a credit for that tax to shareholders. These are called franking credits. A 'fully franked' dividend means the company has paid the full company tax rate (30%) on the profit.

Gross-Up and Tax Offset

To calculate your tax, you must 'gross-up' your dividend by adding the franking credit amount to it. This total is added to your other income to work out your tax. Finally, you can use the franking credit to reduce (offset) your total tax bill. Our calculator handles this entire process automatically.

Frequently Asked Questions