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  • Why we look at crypto

    The innovative and complex nature of crypto can lead to a genuine lack of awareness of the tax obligations associated with these activities. Also, the pseudonymous nature of crypto may make it attractive to those seeking to avoid their taxation obligations.

    As interest in crypto has increased, we have worked with partners to:

    • understand the tax implications
    • plan an appropriate regulatory response.

    This ensures our approach is consistent with government policy and aligned to that of our partner agencies.

    The tax consequences for taxpayers acquiring or disposing of crypto assets vary depending on the nature and circumstances of the transaction.

    The crypto asset data-matching program will allow us to identify and address multiple taxation risks:

    Capital gains tax (CGT)

    If you acquire crypto assets as an investment, you may have to pay tax on any capital gain you make on disposal of the crypto. Disposal occurs when  

    • selling crypto assets for fiat currency
    • exchanging one crypto for another
    • gifting crypto
    • trading crypto
    • using crypto to pay for goods or services 

    Omitted or incorrect reporting of income

    In some situations, crypto transactions can also give rise to ordinary income. Taxpayers who trade crypto or businesses that accept crypto as payment have obligations to report the income generated in their tax returns.

    Fringe benefits tax (FBT)

    When employees receive crypto assets as remuneration under a salary sacrifice arrangement, the payment of the crypto is a fringe benefit.

      Last modified: 29 Jun 2022QC 65885