Woodie-There is a tax difference between a DRP and a BSP. My...

Woodie-

There is a tax difference between a DRP and a BSP. My understanding is with a DRP you pay tax now, as with a dividend, getting the franking, however with a BSP, if properly structured by the company, the shares received give rise to a delusional spreading of the original cost base of your shares, without the BSP amount being assessable as a dividend. So if you spend $100 to get 100 shares you're cost per share is $1. If you then get 10 shares in a BSP, your cost base is diluted eg 110 shares cost $100 therefore cost per share is 91 cents for CGT when u sell.