Franking credits

Franking credits represent the tax a company has already paid on any profit it distributes to shareholders as a dividend. Franking credits are declared, along with the dividend, as income and then the credits reduce a shareholders tax liability and in some cases can result in a tax refund. 

Franking credits explained

What are franking credits?

Check out the cash flow diagram to learn more about franking credits.

The basics of franking credits

Understand the basics, follow the examples and try the calculator here.

How franking credits work & who benefits?

Julia Lee's article on franking credits is an easy read guide to help you understand how franking credits work.

The Alliance for a Fairer Retirement System

The ASA is a participating member of the Alliance for a Fairer Retirement System which exists to represent millions of senior Australians, shareholders, self-funded retirees planning for a sustainable retirement.

Check out ASA's page which outlines the Alliances objectives as well as provides links to relevant research.