BSP

What is the Difference Between DRP and BSP?


Learn about DRP and BSP.

Both DRP and BSP are company offerings that increase your investment value. The two are subject to different tax methods under the Australian capital gains tax rules.

Dividend Reinvestment Plan (DRIP or DRP)

DRIP is a company plan offer allowing investors to reinvest cash dividends by buying additional or fractional shares. Majority of DRIPs allow you to buy shares without commission (or at a big discount).

DRP issued shares are treated as cash dividends. For income tax purposes, the shares are subject to franking credits if the dividends are franked.

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