Share trader or investor — how do I know which one I am?

(Newbie)Newbie

21 Mar 2026

I have always treated myself as a share investor but my activity this financial year has changed significantly.

My current approach:

I buy and sell shares every week, typically 2–4 transactions per week
I hold positions for a few weeks before selling at either a profit or a loss
I sometimes buy back into the same company if I think conditions have improved
I have a full-time job — share trading is not my main source of income

I have read the ATO guidance on Share investing versus share trading, but I'm still unsure whether my activity now qualifies as carrying on a business of share trading.

My specific questions are:

Based on the frequency and pattern above, would the ATO likely consider me a share trader rather than a share investor for this financial year?
If I am now a trader, does this apply from the start of the financial year, or only from the point my activity changed?
What are my record-keeping obligations as a share trader? I currently only have basic records through my broker (Sharesight) — is that sufficient?
Can my trading status differ from year to year, depending on my activity level?

Regarding wash sales (if I am still classified as an investor):

Some of my transactions may look like wash sales — I sold shares at a loss and then bought back into the same company shortly after when I felt conditions had improved. This was not done deliberately to manufacture a capital loss, but the pattern is there. How should I treat these transactions in my tax return?

Any guidance would be appreciated. I am happy to consult a tax professional but want to understand the basics first.

0 likes

214 views