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True or False?

Cryptocurrency gains are tax free or only taxable when the holdings are cashed back into Australian dollars.

Answer: FALSE

ATO’s assistant commissioner Tim Loh said a big myth is that people think crypto is a currency, rather than an asset, which is how it is classified by the ATO.

But the ATO closely tracks where cryptocurrency interacts with the real world through data from banks, financial institutions and cryptocurrency exchanges, he revealed.

“We follow the money trail back to the taxpayer and we do that through the ATO which has data matching profiles with cryptocurrency exchanges and they provide that information to us and we use that information to cross match with people’s tax returns,”

“There isn’t a game of hide and seek. We have got that information and all we are asking people to do is follow the rules. We know most Australians follow the rules.”

Mr Loh explained that gains from cryptocurrency are similar to gains from other investments, such as shares.

Generally, as an investor, if you buy, sell, swap for fiat currency, or exchange one cryptocurrency for another, it will be subject to capital gains tax (CGT) and must be reported.

CGT also applies to the disposal of non-fungible tokens.

Read what one of our many happy clients commented after we recently completed their crypto tax return.

Neil was a lifesaver this year when doing my tax return. I was stressing as I had dabbled in cryptocurrency and didn’t have any idea how to declare this. Neil took over everything and did an amazing job. I will use him in future and would definitely recommend him for anyone else who may be involved in cryptocurrency!!! Five stars

 

Below are our prices. You can either get us to complete your full tax return or if you are only interested in a crypto profit and loss report, you can get that as well.

 

 

 

 

Tax Return including Crypto Profit/Loss  

(Added to the non-crypto  tax return fee)

Per tax return

Ex GST

Crypto Profit/Loss report only ( per tax year)

(present your report to your tax agent)

 

Ex GST

 

up to 200 transactions $299  $399
200 to 1 000 transactions $299 – $599 $699
1 000 to 5 000 transactions $599 – $899 $999
more than 5 000 transactions speak to us speak to us

 

Should you need help with your crypto tax return, please contact us via email questions@accoladeaccounting.com.au

Phone us in Melb (03) 9524 3145 or Perth (08) 6263 4466