My personal situation is owner of several businesses and part time trader. My accountant made me set up a Pty Ltd business for the trading so that my marginal rate can be lowered, I only pay corporate rate on profits . I only take a wage in years when my trading account is stuffed and I haven't earnt what SWMBO thinks we need for the year from my other businesses.
When I spoke to my accountant he spoke with the ATO and their main enquiries were intent, size and time held. I kept strict records and submitted them to accountant before setting up PTy Ltd and I only had 46 trades, longest I held for was a fortnight. I questioned if trading like this over a 3 month period was legitimate to be deemed as a trader, I had too focus on other businesses and they were happy with it. I'm now in 3rd year of trading like this and off to accountant now to look at things, ATO all happy.
But as others said they don't like it when you do try and offset trading losses with other income, fortunately I've not been there yet but it we one of my questions when starting.
