• Duenan
    2·
    22 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·
      22 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·
        21 hours ago

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