ATO Cracks Down: Crypto Profits Under Scrutiny as Aussies Lodge Tax Returns

By Ben Knight July 01, 2024 In Australia, Cryptocurrency Tax, Tax
  • As Australia hits the first of July, it’s time for many investors to consider lodging their tax returns.
  • This financial year, the ATO has pledged to ramp up efforts to ensure all crypto traders are meeting their tax requirements.
  • The key to their efforts is a new data-matching software, which can reportedly sort through decades-old data from most Australia-regulated crypto trading platforms.

Uh Oh… It’s tax time in Australia.

For some, negotiating this timeframe is as simple as logging into an online portal and claiming thousands of dollars on a tax return.

But for most, it’s a time of spreadsheets, capital gains and stress.

For the first few years of crypto’s existence, people treated it as an “out of sight, out of mind” asset. If they’d made a few bucks off it, it’s not as if the Australian Tax Office had heard of the blockchain anyway. 

Advertisement

But times have changed, and digital currencies are a legitimate asset – meaning that they are subject to tax obligations, same as anything else. 

Unfortunately, some people in the sector still maintain the original crypto mindset and believe they’re above tax regulations in the country. 

But it’s time for them to beware – the ATO is cracking down even harder on crypto traders this financial year.

Related: Australia Bans Credit Card and Cryptocurrency Use in Online Betting to Curb Financial Risk

Data Matching Program to Sift Through Over a Decade of Trading Information 

The key to the ATO’s newfound oversight is a novel data-matching program. Licensed exchanges in Australia are required to provide data to the ATO – and now the tax regulators will be able to see information across crypto trading platforms and match traders. This will help them identify those who are making profits…and not reporting them.

Maryna Kovalenko, Tax Co-Founder at Syla

Tax time doesn’t have to be stressful for crypto traders. As long as you fulfil all your financial obligations, there’s no need to worry.

But for peace of mind, several resources are available to investors that previously weren’t. For example, various crypto-dedicated tax calculators are accessible to Aussie traders, as well as a couple of new tax-saving techniques that may help come report time.

Those who are prolific traders or investors are recommended to seek the advise of a professional.

Get the most important crypto news delivered to your inbox by subscribing to the CNA newsletter

Ben Knight
Author

Ben Knight

Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.

You may also like