The Australian Tax Office (ATO) has published a free crypto tax fact sheet on its website with some tips to help Aussies with their crypto tax returns.
What it Includes:
- Disposal of cryptocurrency
- Calculating capital gains tax (CGT) on cryptocurrency
- How and what to keep records of
- Personal use assets and cryptocurrency
- Examples of all of the above
These highlights were taken directly from the report without edit.
You Can Claim Your Losses
“You can claim any current year net capital loss against future capital
gains. Report the loss in your tax return so you have it available for
If You HODL, It’s Considered An Investment, Not “Personal Use”
“The longer you hold cryptocurrency, the less likely we consider it a personal use asset.”
“In most situations, cryptocurrency is not a personal use asset and will be subject to capital gains. However, limited exceptions apply.”
“Cryptocurrency is not a personal use asset if it is kept or used mainly as either:
- an investment
- part of a profit-making scheme
- in the course of carrying on a business”
“Cryptocurrency is a personal use asset if you:
- acquire and use it within a short period of time
- directly exchange it for items you personally use or consume”
Record Your “Disposals”
“You must report a disposal of cryptocurrency for capital gains tax purposes if you either:
- exchange one cryptocurrency for another cryptocurrency
- trade, sell or gift cryptocurrency
- convert cryptocurrency to a fiat currency, for example, to Australian dollars (AUD).”
“Disposals” Go Against Capital Gains
“If you exchanged cryptocurrency for goods, cash or other cryptocurrencies then this is normally considered a disposal for the purposes of capital gains tax, and you may need to include a capital gain or loss in your income tax return.
“Only the capital gains you make from disposing of personal use cryptocurrency acquired for less than $10,000 are disregarded for capital gains tax purposes.”
Transferring Between Your Wallets is Not Considered a “Disposal”, But the Fee Is
“If you only transfer cryptocurrency from one wallet to another wallet
while maintaining ownership of the coin, it is not considered a disposal of cryptocurrency for tax purposes.
“If your cryptocurrency holding reduces during this transfer to cover
the network fee, the transaction fee is a disposal and has capital gain consequences.”
Use the AUD Value To Calculate Capital Gain or Loss
“Convert your cryptocurrency purchases and sales into AUD to calculate your capital gain or loss.”
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