Trading as an investment

so called "shareholder"

--> for the purpose of earning dividend income 

--> treat as capital gain/ loss

Trading as business

so called "share trader"

--> for the purpose of earning income from buying / selling shares. 

--> factors to consider as share trader for business:

  • regular trading activity
  • the higher volume of purchases or sales of shares , the more likely this is carrying on business
  • similar transactions nature (buy / sell)

factors to consider as investment (capital gain/ loss) or business (taxable income/ loss) 

ato link,-units-and-similar-investments/Shareholding-as-investor-or-share-trading-as-business-/