Ann: FY25 Half Year Results & On-Market Share Buy Back, page-53

Is there much difference between a divy or a buyback ?

Yes! Ur comment is correct when it comes to the CG tax position.
Refer below to my example from a previous post.

In the Suncorp example, every shareholder, professional trader and institution basically received 2 incomes within 1/2 of financial year.
Shareholder did not need to do anything!

These 2 sources of return consists of dividends and a return of capital distributions which is just handed out by board for being faithful shareholder.

The Suncorp example also incorporates a the buyback function thru consolidation - professional trader and institutions would possibly class this as an involuntary buyback scheme.

The traders and institutions hate this type of return of capital because - from my understanding - they’re compelled to pay normal income tax on the return of capital distributions.

It also basically removes fiddle time for institutions to rearrange their holding to end up paying the lower capital gains tax.
NNC buybacks lasts for extended period of time not determined by a set date as is the case of announcement.

A researcher should look at who participates in this type of buybacks and whether there is an inherent bias that advantage a particular group.
With NHC buyback you have to participate in the buyback.

In my opinion small holders are less likely to participate in the buyback unless they they’re desperate for funds.

It basically means small holders who are entitled to this excess funds, ends up benefiting the traders and the institutions.

I’II qualify my remarks from a ATO point of view because the board may not had the ability to meet the criteria for the other 2 alternative option on returning capital as a distribution.

I believe that the majority of mum and dad investors would have preferred 2 dividend and a bonus return of capital within a financial year.

Study a couple of alternative return of capital …. Recently a return of capital was carried out by Suncorp ….I had 1000 shares…received $3000 and special dividends of 22 cents per share.
On top of that I still received a normal dividend of 41cents but my shareholding was consolidated from 1000 shares to 852..