: If I make a loss in trading stocks, can I state it as a loss of investment in the tax refunds? I was wondering if I could turn around my losses (a little bit) to help with my tax refunds. If I have negative total profit

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If you are an investor any capital gains from assets held less than 12 months will be added to your taxable income and taxed at your marginal tax rate. Any capital gains from assets held for 12 months or more will receive a 50% discount before they are added to your taxable income and taxed at your marginal tax rate.

Any capital losses cannot be deducted from your other income. Capital losses reduce any capital gains before any discount is applied. If you have more capital losses than you have capital gains, the remaining capital losses will be carried forward to future tax years where they can be used to reduce any capital gains in that year.

If you are registered as a share trader with the ATO, then any losses will reduce your gains plus income from other sources. You will also need to work out any paper gains and losses as of 30th June, as this will form part of your income as well. However, if you are registered as a share trader, you will not receive a 50% capital gains discount for any assets held for 12 months or more.