Crypto Tax Accountant Australia
Since Bitcoin’s sudden rise in popularity over a decade ago, cryptocurrency has become a household name, with millions of Australians choosing to invest in one cryptocurrency or another.
Many people think that, because Cryptocurrency isn’t regulated by the Australian Government, they don’t need to pay tax on their crypto investments, but this isn’t the case.
In this guide, we’ll teach how to comply with Australia’s laws surrounding crypto investments, so you can avoid getting into hot water with the ATO at tax time.
What is cryptocurrency
Cryptocurrencies are fully digital currencies, which allow people around the world to safely send and receive money, without relying on banks or physical cash.
Cryptocurrencies are decentralised, which means they aren’t verified by any singular bank or government. Instead, every cryptocurrency transaction is recorded in a public ledger and secured using cryptography. You may have heard the word ‘blockchain’ used in discussions about cryptocurrency, which is the name of the unique technology which facilitates all this.
Bitcoin was the first cryptocurrency, and remains the most popular today. There are plenty of other commonly-used cryptocurrencies, though; such as Etherium, Tether, Binance Coin, and the U.S Dollar Coin.
Like traditional currencies, trading cryptocurrency for capital gain can be a sound investment strategy, so long as you understand the potential risks and properly comply with Australia’s tax laws.
Cryptocurrency tax returns in Australia
In Australia, everyone is required by the Australian Tax Office to keep a record of all their cryptocurrency transactions. This is so the ATO can charge the appropriate Capital Gains Tax on any profits you make from selling cryptocurrency. Failing to declare profits you made from crypto investments will be considered tax avoidance by the ATO, and you will be fined/punished accordingly.
The kind of details the ATO will expect from you around tax time are:
- Cryptocurrency you purchased, and for how much
- Cryptocurrency you sold, and for how much
- Transactions you made using cryptocurrency
- Your cryptocurrency wallet address
Use a professional accountant
Properly reporting your cryptocurrency assets on your tax return can be complicated. Misreporting your cryptocurrency assets to the ATO is a crime.
To avoid the hassle of filing your tax return, and the possible punishments that could come with making a mistake, let our professional accountants handle your tax return. Our tax accountants are experts on the requirements for cryptocurrency users, and make filing your tax return simple, easy, and efficient.
If you need advice on investing in cryptocurrency, or have any questions about cryptocurrency’s implication on your tax, get in touch with one of our expert accountants.