IG Index - Australia

DaveT

Well-known member
434 6
IG Index - Austrailia

Hi all.

I notice on Ig Group's website, that they have been operating IG Index in Austrailia since 2002.

Are there any Aussie traders out there using this platform? Is this the first example of spread-betting in Austrialia?

I previously understood it to be a unquely British phenomenon.

www.iggroup.com
 

juanbyte

Well-known member
333 10
Dave

CapitalSpreads and other companies accept clients fron Aus.

The Assie taxman is going to make a statement about spreadbetting soon

This may be of interest to you:

If a taxpayer is found to be in a business of gambling, the proceeds of that business will be assessable income under s. 25(1) of the Income Tax Assessment Act (ITAA) (1936) (Cth)[19]. Accordingly, the taxpayer, is entitled to claim as deductions, expenses and losses necessarily incurred in running that business under s 51(1) of the ITAA[20].

The courts have been rather reluctant to find a business of betting. In Brajkovich v FCT 89 ATC 5227 at 5234, the Full Federal Court stated that 'the gambler who seeks to demonstrate that he is ... a businessman has more to show by way of system and profit motive than those who engage in more conventionally "commercial" activities'. The Commissioner of Taxation has also stated in an income tax ruling[21] that although it is possible for a mere punter to be carrying on a business of betting, it will be rare for a taxpayer with no connection with racing other than betting to be carrying on a business of betting.

The principle criteria for determining whether there is a business of gambling were laid down in Brajkovich at 5233:

- 'whether the betting is conducted in a systematic, organised and "businesslike" way'; - 'its scale: i.e. the size of the wins and losses' -'whether the betting is related to, or part of, other activities of a businesslike character, e.g. breeding horses'; - 'whether the bettor appears to engage in his activity principally for profit or principally for pleasure'; - 'whether the form of betting chosen is likely to reward skill and judgment or depends purely on chance'; - 'whether the gambling activity ... is of a kind which is ordinarily thought of as a hobby or pastime'.


Evidence of a systematic operation includes using a computer as a data base for form guides or to calculate odds; formulating a plan to obtain the best odds; taking steps to lessen the element of chance, maintaining a fund of capital with which to bet; and maintaining adequate daily and weekly records of the taxpayer's position[22].


The Commissioner of Taxation recommends that the factors considered in Brajkovich, Evans and Babka v FCT 89 ATC 4963 be taken into account in determining whether a business of gambling exists[23]. Where the courts find that there is a business of gambling because of a profit motive, a systematic operation or other similar factors, any gambling losses would become deductible under s 51(1) of the ITAA.
 
A

aussietrader

0 0
Hi DaveT

I am an aussie spreadbet trader and a financial adviser. I spoke at length with the ATO about this for clients and personal info. They referred me to the 'aggresive tax planning' department where I asked for a ruling as their 'advice will come shortly' statement was 2 years old!

They still have no idea! My opinion is if you are a full time punter, I would be inclined to pay the tax. If however, trading is incidental to you business (or you are pursuing it as a hobby) I feel comforable not declaring it.

Having said that, if you want a definitive ruling you have to provide a lot of personal info that (imo) will be sure to have them peer into your tax return.

Also, yes I use IG and fins although I prefer fins (started with them and like to think have a good r'ship - they have even done me a good turn or two when I have made a massive error) but IG will do same. If you are a big enough punter they will shave the spread - even by half in some cases. Have to be in the $40-$50 a point and be a regular though.

Cheers

AT
 
 
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