"Dividend washing" allows sophisticated investors to effectively claim two sets of franking credits on one parcel of shares.
Mr Bradbury said:
"The measure will ensure that when an investor sells shares ex-dividend (retaining the right to the dividend and franking credits) and then immediately buys equivalent cum-dividend shares (which include the right to an additional dividend and franking credits), that they will only be entitled to claim one set of franking credits.
The changes will be targeted to the special two-day period after a share goes ex-dividend, and will not impact typical 'mum and dad' investors with franking credit tax offset entitlements below the $5,000 threshold."
The closing date for submissions is Monday 17 June 2013.