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Hi Dazza . . . this was covered in detail some months ago . . . unfortuneately us guys don't stick too close to the thread titles so past posts are hard to find.

1. You are entitled to the divvy for a purchase up to the day before the ex-div date.

2. If you also want to claim the franking credit, you do that when you do your tax return. You will have needed to have held the shares for at least 45 days to be eligible for a franking credit. Badically franking credits are used to offset / reduce your income tax payable. It was noted in the last time this question popped up that if one is a low income earner they can actually receive the franking credit by way of a tax refund.

3. If you reside overseas one is not entitled to franking credits.

4. Capital gains tax applies if you make a profit on the sale. CGT is reduced to 50% if you hold the shares 12 months.

5. Courtesy of the Howard / Costello government tax legislation was introduced to encourage foreign investment in the ASX . . it did this by making profit from sales of shares not subject to CGT . . . the exception is shares related to property.