The Australian Taxation Office (ATO) have issued a fact-sheet for those who hold or trade crypto assets.

You can download it here:

Essentially, it outlines what to do if you exchange crypto for goods, cash or other crypto – it is likely a Capital Gains Tax (CGT) disposal and may need to be included in your tax return.

As always, it is important to keep really good records of all of your transactions.

In addition, you will need to include any ‘airdrops’ at ‘Other Income’ in your tax return – similar to bank interest.

As with other assets, there are rollovers and exemptions which can reduce or eliminate your capital gain or loss.

The tax office suggests that the longer you hold crypto, the less it becomes a personal assets, and more of an investment.

Exemptions may apply if:

a) The personal use asset was acquired for less than $10,000; or

b) The crypto is mainly used for personal consumption items

If you have any questions please email anna@infodirect.au.

Author: Anna Rosemarie

Entrepreneur