Australian Tax

[Samuel]

Has anyone had experience with paying tax on cryptos in Australia? It seems like a very grey area at the moment. I want to to the right thing, but I dont want to get ripped off either. 

From the ato website:

Using Bitcoin to pay for personal transactions

Generally, there will be no income tax or GST implications if you are not in business or carrying on an enterprise and you simply pay for goods or services in bitcoin (for example, acquiring personal goods or services on the internet using Bitcoin). Where you use bitcoin to purchase goods or services for personal use or consumption, any capital gain or loss from disposal of the bitcoin will be disregarded (as a personal use asset) provided the cost of the bitcoin is $10,000 or less.

Capital gains

There may also be capital gains tax consequences where you dispose of bitcoin as part of carrying on a business. However, any capital gain is reduced by the amount that is included in your assessable income as ordinary income.

Disposing of bitcoin acquired for investment

If you have acquired bitcoin as an investment, but are not carrying on a business of bitcoin investment, you will not be assessed on any profits resulting from the sale or be allowed any deductions for any losses made (however, capital gains tax could apply – although see the comments above about personal transactions). However, if your transactions amount to a profit-making undertaking or plan then the profits on disposal of the bitcoin will be assessable income.

 

As you can see it mentions business a lot, but not any clear rules for individuals. Im very confused. In one sentance it says if you are not in business, you dont have to pay tax on profits. In another it states you may have to pay tax. It also say "specifically bitcoin". Here is the link to the full document. It would be interesting to hear others point of views. 

https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-currencies-in-australia---specifically-bitcoin/

Edited June 2, 2017 by Samuel

[Aapeli]

This is quite interesting topic for most of us. Should there be one post of Taxing Cryptocurrencies in different countries and/or could this topic be added to the Technical-> Regulation & Taxing? If not, we are gonna see each country here with their own post about taxing.

Edited June 2, 2017 by Aapeli

[DariStar]

Give 'em a call i did it last month and they told me as investor I'm only obligated to pay capital gain tax after selling cryptocurrency (but they weren't so convincing xD cause they didn't even know what bitcoin is) in july I'm gonna talk with my tax agent and ill ask him more about it 

 

number : 132861

[natethesnake]

There was another thread on the same subject: 

 

[Guest]

Some references:

1. ATO - https://www.linkedin.com/in/ryanzagone/
2. CoinTelegraph - https://cointelegraph.com/news/australia-will-recognize-bitcoin-as-money-and-protect-bitcoin-businesses-no-taxes
3. Crypto-News - https://www.crypto-news.net/bitcoin-to-become-just-like-money-in-australia-on-july-1/

 

[Samuel]

Still clear as mud

[Guest1]

It's regarded as currency and not goods. Hence the recent announcement of removal of GST on Bitcoin and other altcoins.

What that means that you will need to pay capital gains tax as an individual at your marginal rate. However, if you hold your crypto holdings for more than a year, you get a capital gains tax deduction of 50%.

I hope this helps.

[karlos]

1 hour ago, Streamliner said:

It's regarded as currency and not goods. Hence the recent announcement of removal of GST on Bitcoin and other altcoins.

What that means that you will need to pay capital gains tax as an individual at your marginal rate. However, if you hold your crypto holdings for more than a year, you get a capital gains tax deduction of 50%.

I hope this helps.

That's my understanding as well. Though I urge anyone to get proper tax advice from a professional. Paying the correct amount of tax you owe is too important to mess up.

[Let_her_Ripple]

Has anyone found a crypto-knowledgable accountant in Australia? I have a small side-pot that I use to trade every now and again.. I presume CGT will apply to these.