I dont think there is a right or wrong answer to this one.. i...

I dont think there is a right or wrong answer to this one.. i think it is open to interpretation & you could argue a solid case either way.. as long as you used the same method year after year the ATO couldnt really complain.

If u are trading as a business (company, partnership sole trader etc.) then it would depend on the accounting method used.. if using cash method then settlement date would be the one to go by.. if using accrual method.. trade date would be the go (Unsettled trades as at June 30 becoming part of your debtors & creditors).

However if trading as an individual... individuals would generally be seen to use a cash accounting method so it could be argued that the settlement date i.e. when the proceeds of such trades are received or parted with is the more important date.. but as previous posters have already mentioned you could also argue that the trade date is when a contract has been entered into & is therefore the more important date... again i think uniformity year after year is the important thing here...

Personally i use the trade date.. always have & always will.. i find it easier to account for & have the view that if i buy shares on any given day they are mine to sell again before settlement if i wish.. same if i sell shares.. they are no longer under my control... the money changing hands is inevitable & just a matter of time.