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 https://www.ato.gov.au/General/Capital-gains-tax/Shares,-units-and-similar-investments/Shareholding-as-investor-or-share-trading-as-business-/