I am not saying you are wrong, but I would be hesitant to accept that statement. Surely if the CGT time counter starts from when you transfer to yourself from one account to another, that must be a CGT event. But Trading Stock becoming a CGT Asset is not listed as a CGT Event from what I can see. The reverse certainly is the case: "CGT asset starts being trading stock" as it is listed under K4 in the ATO table of CGT events shown here: https://www.ato.gov.au/General/Capi...set-and-other-CGT-events/Types-of-CGT-events/
If what you say is correct, what are the mechanics of it. Do you declare a trading profit based on the stock value when you do the transfer and use that value as the CGT cost base? If not, that would be open to abuse because (in general) a CGT asset becoming trading stock has no (negative) tax revenue implications to the ATO, as the applicable CGT is assessed at the time of the transfer (and depending on the time held could result in a potential loss of the 50% discount to the tax payer if under 12 months). But the reverse is not the case. If shares have undergone a substantial gain when held as trading stock and that gain is not brought to account as trading profit when changed to a CGT asset, then potentially the ATO could lose 50% of the gain made prior to the transfer, if held for another year after the transfer before being sold as a CGT asset.
