tax implications, page-10

Rupert77,

here are the broad main points:

(1) there isn't a separate set of tax rates just for taxing trading profits;

(2) if you are an investor, your gains are called capital profits and losses called capital losses. If you are a trader, gains are trading profits and losses are trading losses. There are some differences in the tax treatment of these gains and losses, as well as expenses incurred in deriving those items.

But, they all form part of your taxable income and will be taxed at your marginal tax rate. Capital losses can be carried forward if you can't offset them against your capital profits.

(3) whether you are an investor or a trader will depend on several factors. The ATO has issued some broad guidelines on this this.

(4) you mentioned short term trading: if you buy and sell within 12 months, even if you are an investor, the CGT concession does not apply.

(5) important to keep accurate records to support your figures, don't leave this type of the exercise to the last minute, file and keep the relevant paperworks as and when the trading trabsactions occur.

There might be some other pertinent points that might have escaped my mind at the moment.