OT - if you use an accountant, ask them this - what does the ATO have access to now? I'll tell you, all share registries report your buys, sells, and dividends. The ATO has this info before you do sometimes.
Investors, who wish to change their status to traders to claim a loss, will get a please explain. The frequency of trading is what they look at, plus if you have a fulltime job or not. I know a lot of people who have a fulltime job and claim they are a share trader. ATO has audited some, with 5 of them failing the test. One had a fulltime job making $120,000 but claimed he was a share trader to claim his losses. He had traded 89 different times during the year (so 178 trades). He was knocked back as the ATO checked with his employer who said he was a fulltime employee and should not have time to trade. The irony, he lost his job because of the ATO audit and is now actually a fulltime trader.
