When is Cryptocurrency considered Personal & Exempt from Tax in Australia
I'm Thomas Cane the tax advisor at Goodwill Chartered Accountants. Today we're going to look at when is cryptocurrency considered personal exempt from tax in Australia.
The misconception there often is is that when you purchase cryptocurrency for a value of less than $10,000 and then that value increases and you sell the cryptocurrency at a value that's higher than $10,000 that you don't have to pay tax in Australia, but that is false. So what it really comes down to is the intention, and when I say the intention I say what are you actually buying the cryptocurrency for.
If you're buying the cryptocurrency to purchase personal assets using the cryptocurrency itself that is when you don't have to pay tax in Australia. So just to clarify if you purchase cryptocurrency at a value less than $10,000 so say $2,000 and then that cryptocurrency goes up to a value of 8,000 dollars and then you transfer your cryptocurrency to a third party for a purchase of a personal asset or a personal use then you don't have to pay any tax on that difference between the 8,000 and the 2,000.
In conclusion each scenario is different and therefore each individual should seek cryptocurrency tax advice.