Can anyone clarify what is the lovely ATO's position on 'wash sales' specifically for retail investors.
I read the ATO website here and its not clear on what they define as illegal
'“In certain circumstances we may determine that wash sale arrangements are schemes to reduce income tax,” Tax Commissioner Michael D’Ascenzo said.' OK so what exactly do they deem is a wash sale?
i.e. is there any law that forbids me to sell my losing shares in late June (resulting in capital loss which offsets cap gain) and then pick them up again in new financial year? WHat is the exact criteria that defines it as a wash sale vs a genuine changing of mind or mistake?
Also, maybe they only look into it for larger sums i.e. a few k here and there for a personal investor flies under the radar (like the, er, 'dodgy' expense claims that everyone's uncle, cousin and dog files)