Personal Tax and Franking Credits

In by Rarm Paul1 Comment

Rarm Paul

Hi Guys,
I’m a small investor on a low income and all of my stocks that pay dividends have franking credits at 100%.
But I’ve had a thought – because of my low income, if my personal tax rate is less than 30%, that company franking credits are equivalent to, does this mean that if I bought stock with dividends that paid at 0% franking credits, I would potentially get a larger dividend after tax because my personal rate of tax is less than the company rate of tax paid when franked?
Kind regards,
Rarm Paul

  • Edit

    Hey Paul - hopefully we've answered your question on the latest Ask Us Anything -