Popular Cryptocurrency Related Tax Time Questions
Are cryptocurrencies taxed in Australia?
Yes, the Australian Tax Agency (ATO) has issued official guidance confirming that cryptocurrency is taxed as a capital gains asset which means you have to pay tax every time you trade, sell or use crypto to pay for goods/items.
Do I need to file taxes even if i made a loss?
Yes. It doesn’t matter if you only made losses, you still have to report it on your annual tax return. Any losses you report will reduce your crypto taxes in the future, therefore it is beneficial to declare losses.
How are capital gains calculated for crypto trades?
You must use Fist In First Out (FIFO) for calculating your crypto taxes. This means the coins you buy first are also the first ones to be sold.
Are crypto to crypto trades taxed?
Yes. Any exchange of cryptocurrencies is also a taxable event. For ex. if you exchange Ethereum for Cardano, the Australian Taxation Office (ATO) will treat this as a sale of Ethereum at the market price of the Cardano you received.
Do I have to pay tax if I transfer crypto from one wallet to another?
As long as you own both wallets there’s no tax to pay on transfers. However, you still must keep track of the original cost of the transferred coins and have sufficient proof of it for future reporting.
Expert Tax can help in reporting Crypto Capital Gains on your tax returns. Contact us on 0449 952 855 or 1300 869 829 for further assistance.