Calculating Franking Credits
Franking credit = (dividend amount / (1-company tax rate)) - dividend amount.
How much tax do I pay on fully franked dividends?
Fully franked - 30% tax has already been paid before the investor receives the dividend. Partly franked - 30% tax has already been paid on the franked PART of the dividend. And no tax has been paid on the unfranked PART. Unfranked - No tax has been paid.
How do you calculate tax on dividends?
Ordinary Dividend Tax
To calculate your tax liability, multiply your ordinary dividends by your tax rate. For example, if you have $2,500 in dividend income and you're in the 25 percent bracket, you'll owe $625 in federal tax on them.
