so long as you can prove that you "have taken on market risk"...

so long as you can prove that you "have taken on market risk" then selling and re-buying is fine. the ATO made the rule of "first in first out" with respect to CGT. Market risk can be defined as being out for nano-seconds these days. What if you were to sell, then it got slapped with a trading halt a split second later? You took risk in selling and buying back a minute later. They are quite happy to take our capital gains tax....they can not prove that you sold "for tax purposes". prove that you didn't sell because for example you thought the price of gold was going to drop, then you changed your mind and thought that gold was going up....