What are your franking credits really worth?
Australian shares ETFs pass on the tax companies have already paid. Pick your tax situation and see what an ETF's income and franking credits are worth to you after tax, including the cash refund retirees and pension-phase SMSFs can get.
Your tax situation
Your ETF and amount
Franked ETFs ranked by after-tax income
How franking credits work
When an Australian company pays a dividend, it has usually already paid 30% company tax on those profits. The franking credit passes that tax payment on to you. You add the credit to your income (the "grossed-up" amount), work out your tax, then subtract the credit.
If your tax rate is below 30%, the credit more than covers the tax and the ATO refunds the difference in cash. That is why franking matters so much to retirees on low incomes and to SMSFs in pension phase, which pay no tax at all: they get the whole credit back. At 45% plus Medicare, you still pay some tax on top.
- 45-day rule: to claim the credits you generally need to hold the ETF for at least 45 days around each distribution, unless your total franking credits are under $5,000 a year.
- Seniors: the Seniors and Pensioners Tax Offset can mean you pay no tax well above the $18,200 tax-free threshold. If that applies to you, pick the 0% option.
- Tax rates: 2026-27 resident rates: 0% to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above, plus the 2% Medicare levy. Super funds pay 15% in accumulation and 0% in retirement (pension) phase.
Yields are each fund's distributions over the past 12 months, adjusted down where they included one-off capital gains, and are not a forecast. Franking levels are estimates from recent distributions and change with every payment. Assumes credits at the 30% company tax rate. This is a simple estimate using a single tax rate, not tax advice. Your actual tax depends on your whole situation, so check with your accountant or tax adviser. General information only.
