Share Investor Action Plan (Australia 2025-26)

Individuals (and most trusts) get a 50% reduction on their net capital gain when an asset has been held for at least 12 months and is sold before 1 July 2027. For example, a $10,000 gain becomes $5,000 taxable, taxed at your marginal rate. Hold each parcel ≥ 12 months from acquisition (DRP shares each have their own clock). From 1 July 2027 the general discount is abolished for individuals: the cost base is indexed for inflation instead and the real gain carries a 30% minimum tax rate, so holding past 12 months no longer halves the gain by itself. Use the CGT calculator to model your scenario.

CHESS-sponsored shares are registered directly to your Holder Identification Number (HIN) — you legally own them. Broker-sponsored (custodial) shares are held in the broker's name on your behalf. Tax treatment is identical (same parcel records, same CGT). The difference matters for insolvency exposure, dividend handling, and switching brokers. CHESS gives portability; broker-sponsored is simpler for record consolidation.

Yes. The ATO has explicitly flagged wash-sale arrangements (Taxpayer Alert TA 2008/7, Taxation Ruling TR 2008/1) under Part IVA. Unlike the US, there's no fixed "wait N days" safe-harbour rule — the ATO looks at whether selling a share to crystallise a loss and quickly re-acquiring it left your economic exposure genuinely unchanged. If so, anti-avoidance review can apply and the loss may be denied. Either don't re-buy the same security while exposure is unchanged, or accept the loss only when you genuinely don't want to hold the stock. Switching to a similar-but-not-identical ETF can be acceptable.

Franked dividends carry attached imputation credits. The gross-up is rate/(1-rate) of the franked dividend: about 42.9c of credit per $1 of dividend from a standard 30%-tax-rate company (30/70), or about 33.3c per $1 from a 25% base-rate entity (25/75) — NOT a flat 30c per $1. You include both the cash dividend AND the franking credits in your assessable income (gross-up), then claim the credits against the resulting tax. Excess credits are refundable for individuals. Holding-period rule: you must hold shares ≥ 45 days at risk for franking credits unless your total franking credit entitlement for the year is below the $5,000 small shareholder exemption. Use the franking calculator to model.

When you cease to be an AU tax resident, ASX shares are treated as deemed disposed at market value (CGT Event I1) — unrealised gains crystallise. You can elect under s 104-165(3) to disregard the deemed disposal, treating the shares as taxable Australian property until the actual sale. The election is per asset, irrevocable, and made in your final AU resident return. Unless you're certain you'll sell during the non-resident period, the election is usually preferable.

They can be, especially for low-marginal-rate investors. Off-market buy-backs typically include a fully-franked dividend component on top of the capital component. The franking credits attached can refund some or all tax owing. Each buy-back has an ATO Class Ruling that specifies the dividend/capital split. Compare the buy-back tender price + franking value vs simply selling on market — your marginal rate determines which is better.