• Bottom_racer
    3·
    19 hours ago

    Fully franked you get a credit for entire dividend amount and can offset your tax with that credit.

    might help

    • Duenan
      2·
      19 hours ago

      Let’s say I have a dividend payout of 20cent and it’s 100% franked.

      If it’s fully franked do I only get 20cents? or more than 20c?

      • Bottom_racer
        3·
        19 hours ago

        You get (20c / (1-0.3)) -20c = A franking credit of about 8.5c

        so you’re ending up getting 20c + 8.5c or 28.5c. It’s to avoid double taxation.

        • Duenan
          2·
          18 hours ago

          oh ok, I didn’t realise you get the franking credit as well.