krusty, you qualify as a sole trader using the ATO threshold....

krusty, you qualify as a sole trader using the ATO threshold. you CAN offset your trading losses against your ordinary income (salary etc). i have done it a couple of times - the first was a trading loss for the year, and since it exceeded that years income, i carried forward to the following year as well. of course, you would need to qualify in the 2nd year as well (was the threshold limit for me). So as long as you are a regular trader you are good. however, it also hurts when you have to pay the tax man when you make good money.. and this year will hurt more thanks to SIR!

ps - i got my CPA from the US, but thats my reading of aussie laws.