Crypto is generally taxed as a CGT asset when it is sold.  However, if you trade heavily in crypto the sale might be on revenue rather than capital account. To further complicate matters, if crypto is used to obtain goods or services and you make a gain of less than $10,000, the gain may be exempt from tax. Crypto trading is on the ATO radar: in 2020, the ATO sent out approximately 350,000 notices to cryptocurrency investors. It is therefore really important that you understand your tax obligations and keep good accounting records. The various taxing points are discussed below. CGT (Capit ..read more

As everyone knows, the taxation of cryptocurrency is a very grey area.  However, the ATO considers that cryptocurrency is a CGT asset (and not cash). Thus the disposal of cryptocurrency for a profit will ordinarily give rise to a capital gain. This then leads to the next question, is the sale of cryptocurrency on capital or revenue account?  This issue has particular impact on initial coin offerings (ICO) where the cost base of the cryptocurrency is nil. Whether a gain on the disposal of cryptocurrency is included in a taxpayer’s assessable income as a capital gain or as ordinary inc ..read more