this post was submitted on 18 Sep 2024
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[โ€“] [email protected] 3 points 1 month ago (1 children)

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

might help

[โ€“] [email protected] 2 points 1 month ago (1 children)

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?

[โ€“] [email protected] 3 points 1 month ago (1 children)

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.

[โ€“] [email protected] 2 points 1 month ago

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