I don’t believe there is a similar restriction to the Pattern Day Trading Rule in Australia.
However, Australian traders must follow the regulations set by the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO).
Key rules for day trading in Australia:
- In March 2021, ASIC implemented leverage limits for retail clients trading Contracts for Difference (CFDs) in Australia to mitigate excessive risk. The maximum leverage is 1:30.
- The Australian Tax Office distinguishes between investors and traders for tax purposes. For traders who engage in frequent transactions with the intention of making a profit (like many day traders), profits are generally treated as ordinary income and taxed at the individual’s marginal tax rate.
For more information, check out our guide to day trading taxes on Australia.
