Yes, but it is NOT necessarily a CGT event. If your CFD trading...

Yes, but it is NOT necessarily a CGT event. If your CFD trading constitutes a "business" under the ATO legislation (and this ruling), then a gain from a CFD trade is treated straight out as assessable income. Conversely a loss from a CFD trade is an allowable deduction from your assessable income. (see ruling)

Thus, the CGT provisions are completely by-passed, essentially because the ruling treats the proceeds from a CFD trade as income, not capital gains, if you are in the "business" of CFD trading. The difference in treatment is very significant.

The prescribed rules/case law for what constitutes a "business" are re-iterated in this particular ruling, alternatively see the usual ATO legislation... I think most CFD traders could qualify as running a "business" if they trade often enough, and therefore CGT provisions are not applicable to them in this particular area.

Thanks for posting the ruling; there are some very interesting cases and history regarding the treatment of horse racing, dogs etc betting down the bottom


cheers