45 Day Holding Rule

The 45 day holding period rule requires investors to hold their shares “at risk” for a minimum of 45 days to receive the benefits of franking credits.¬† The 45 days at risk does not include the purchase date or sale date.

Small Shareholder Exemption

The 45 day holding period rule does not apply where an investors total franking credits is below $5,000 for a financial year.

Preference Shares

Preference shares have a holding period rule of 90 days at risk (not including purchase date or sale date) to receive the benefits of franking credits.

Further information can be found at: Australian Taxation Office – Franking Credits

Please speak to a registered taxation agent or accountant regarding  franking credits and holding period rules as the information above is factual in nature and does not take into account your personal circumstances.