However, if you are a trader, you cannot use the 50% CGT discount.
Therefore, you need to ask yourself: "Will I be holding shares for more than 12 months?"
Everyone wants to receive the 50% discount but reality is often different.
For example, in 2007 and 2008 (my first two full years on the ASX) under CGT, I reduced my share income by only 4%.
Personally, I have found my method of investing does not see me holding shares for more than 12 months.
In summary, if you will not be holding shares for more than 12 months, it is 100% advantageous to be a trader and treat your shares as trading stock rather than CGT assets.
