Non Trader :Shares Income (Dividend and profits) added to your...

Non Trader :

Shares Income (Dividend and profits) added to your main source of income (Say Salary),
Losses carrried forward forever and can ONLY be set off against gains from shares (
Dividend and profits).

Trader :

In this scenario - Income from share trading (and dividend income) is considered
as business/trading income. Losses CAN be set off against this income and any
balance (If any after set off) can be carried fwd forever and set off against Income.

The trick is to know if one is a trader or non trader. ATO has no accurate guidelines
(correct me if I am wrong) - the examples they have on their website make me feel that
if you share trade and its regularly then you are more likely to be classified as a
trader. If you just invest and earn Dividend then you are more likely to be classified
as a non trader.

I am an accountant but NOT practiciing accountant so please seek advice.

http://www.ato.gov.au/businesses/content.asp?doc=/Content/21749.htm

http://www.ato.gov.au/businesses/content.asp?doc=/Content/21749.htm&page=8&H8

http://www.ato.gov.au/businesses/content.asp?doc=/Content/21749.htm&page=7&H7