My SMSF in PENSION phase holds BHP...(my 4th largest holding)I...

My SMSF in PENSION phase holds BHP...(my 4th largest holding)

I am comfortable with that level of holding

However, it is my understanding that it will be beneficial to me to sell off-market then buyback on-market, because the full refund of franking credits will mean I make a profit.

(unless BHP moves up too much in price before I buyback)


I just checked the BHP ann.

Just running some figures up here for discussion.

Assuming current SP $46..applying full 14% discount.

Using $0.28 as Capital return, rest as FF div


$46-14% = $39.56 - 0.28 (capital return) = FF Div $39.28

Return to 0% SMSF pension holder =

$39.28 + ($39.28 x 3/7= $16.83 (credit)) + 0.28 (capital) =
total $56.39

ie approx $10 above current market value, quite a tidy profit on 2000 shares

I would be wanting to buyback on-market at the best time to get them at the lowest price I could asap.

Any thoughts on when that might be ?, or poke holes in my numbers?

Finally, as far as I know, the ATO has no problem with an immediate on-market purchase by holders ie they dont classify as "wash-sale"

I will clarify with my accountant, but its good to hear a few opinions first, so I can ensure I ask the right questions for his expensive time