Dude I am not as nice nor as patient as Cain, I get the distinct feeling you can't unlearn dumb. Here's the deets: under 30% - fill in the fekin franking credit refund form - THERE WAS A WHOLE FEKIN ELECTION ON THIS Over 30% - like Cain says, divide your dividend by .7 to get your grossed up dividend ($1). Multiply this grossed up figure by your marginal tax rate - that's the tax owing. So let's say you are in the top tax bracket and are getting hit by the government to pork barrel some car parks at the rate of 47% - your tax owing is 47cents/share. But now deduct the 30% franking credit (30 cents) from the 47 cents, because that 30cents was paid by FMG (or whoever). So on a dividend of 70 cents, you get to keep 53cents (70-17). If your 70 cents was not fully franked and you were in the top tax bracket, you would have had to pay 32.9cents tax / share. So you are (32.9-17) 15.9cents / share better off with franking credits.
Your are now going to understand franking credits or else you are either too stupid or you are trolling. Either way stop it!
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