This is one of those situations where the ATO looks for the 'intention' behind it.
There is no fixed time period, and no set price variation,
but rather a 'wash' would be when shares are repurchased soon after tax-loss selling, and at a similar price to the disposal price.
So, if the price continues to plummet and you buy them back 2 months later substantially cheaper, you might be ok.
The ATO are looking for sales and repurchases where the sole intention is to get a tax break (personally I'm inclined to agree with you that the restriction is irksome - after all, there's no guarantee you'll be able to buy the shares back at the same or lower price).
But I think you need to be able to show that the selling was to avoid further capital losses, or some other valid reason, rather than avoid tax.
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- Wash Sale ATO rule for FY 2020 2021
Wash Sale ATO rule for FY 2020 2021, page-2
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