Thanks bellenuit. You have confirmed my understanding, esp. the need to keep all records over time. He was not as precise as you but simply said forget about the five year requirements, the ATO can ask you for evidence whenever they wish, so it seems. If I still have losses at the time of my death, then my beneficiaries will lose the losses but one upside is that they won't have to prove the losses. If I have very few unrealised gains, then that would be beneficial for them as well.
So, slowly but surely I will continue down this path.
