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Edited version of private advice
Authorisation Number: 1051926452254
Date of advice: 20 December 2021
Ruling
Subject: Am in in business of share trading
Question
Are you carrying on a business of share trading?
Answer
Yes.
Weighing up the relevant facts and circumstances it is considered that you were engaged in a business of a share trading business from 1 July 20XX to 30 June 20XX as your activity had significant commercial purpose and character that would be expected of a share trading business.
You can change from conducting an activity as a business to that of being an investor and vice-versa over time as your level of activity changes. You should evaluate your level of activity on a regular basis to see whether you are investing or carrying on a business.
This ruling applies for the following periods:
1 July 20XX to 30 June 20XX
1 July 20XX to 30 June 20XX
1 July 20XX to 30 June 20XX
1 July 20XX to 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You commenced your share trading activity through a broker in 20XX
You conduct your share trading activity as a sole trader.
You conducted your share trading activity XX hours a day averaging XX hours per week during the relevant period.
You have relevant training and qualifications in the share trading and finance fields.
You have a trading strategy that was conducted manually based on market indicators.
You also used automated trading using algorithms to assist with trading.
You had a significant number of trades in each year and traded on a regular basis.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 8-1