ATO is pretty clear on the matter if you are a share investor...

ATO is pretty clear on the matter if you are a share investor

Shares must be disposed of
You can only claim a loss for shares or units you have disposed of. You cannot claim a 'paper loss' on investments you continue to hold.

Losses on worthless shares
You may be able to claim a capital loss on worthless shares before a company is dissolved. You can do this if a liquidator or administrator declares in writing that you will not receive any further distribution from the company.


The previous suggestion from someone to just do it on the basis will never look at it is incorrect. If it is a large loss all the more reason to do it correctly. Even though it might be worthless now, the actual loss could be large hence the reason why you need to meet specific requirements.

obviously individual returns are self assessment but still must be within the tax legislation. If purchased it a smsf it would be 100% looked at by an auditor. If purchased in your own name then it’s less likely but still on you to prove at the end of the day if you get picked up on it.