That's not how my accountant worked with it. It makes sense as well as some foreign stock exchanges apply similar rule.
I had a few discussions about this trader/investor topic and you, if a lawyer, would perhaps agree that Australian regulation is rather vague in terms of defining when you become a trader and when you are an investor for tax purposes. This should be specifically defined, so there's no grey zone. Basically, you set a time limit for which you hold the shares. If you sell within such time frame, you'd pay a tax on it as a trader. If you sell after that period you are an investor. I hold shares in one EU stock exchange and such rule applies there.
Because in a real life people can and often are both. I own some shares for more than a couple years (not exactly for dividends but for their growth), but also I held some shares for only a couple of days.
MiB
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$2.13 Sentiment: Buy Disclosure: Held
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