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Download our Australian Tax Guide into Crypto Currencies

We are pleased to make available to download our guide to the current Australian Taxation treatment for the disposal of Cryptocurrencies under Australian Tax Law.

A brief summary of our guide

To some people Cryptocurrencies have emerged from 2017 as an attractive and potentially lucrative investment opportunity for everyday Australians and astute investors alike. The significant increases in the value of Cryptocurrencies like Bitcoin and Ethereum combined with lower transaction costs & flexibility to invest relatively smaller amounts of capital into a range of currencies has attracted much media attention which has in turn attracted the ‘everyday investor’.

The Australian tax legislation is attempting to catch up with the Cryptocurrency craze and has to date provided minimal guidance on your obligations to report these types of transactions to them.

Classifying the type of user you are:

As is the case with most western countries Australian tax residents are required to report the income, gains or profits that they derive throughout the world to the Australian Tax Office. Our guide will look into the requirements for Individual Australian tax residents to report a sale of Cryptocurrency in their income tax returns and will discuss the three primary types of Cryptocurrency participants:

  1. Cryptocurrency Traders
  2. Investors
  3. Personal Users

We will also look at what indicators are available to assist you to determine if you are a trader, investor or personal user and how that determination will affect how you disclose any profits / gains that you have made. Handy examples are provided for each type of participant.

Other Tax Considerations

Where possible, we have provided additional technical summaries, that may provide additional useful information and references to legislation, public rulings & case law.

Finally, we look into additional tax complexities that are unique to Cryptocurrencies as well as other tax considerations:

  1. What are the reporting obligations when trading in coin-for-coin type transactions – ie. buying and selling between different cryptocurrencies;
  2. What are the reporting obligations when cryptos are traded for other foreign currencies;
  3. What are the reporting obligations when using cryptos are used to purchase personal household items or goods.

We are always here to assist so if you have any further questions about our guide or Cryptocurrencies, please feel free to contact our office for a complementary 20 minute telephone meeting to further discuss your tax obligations.

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