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  • Record keeping for cryptocurrency

    It is vital to keep good records for all your transactions with cryptocurrency, whether you are using cryptocurrency as an investment, for personal use or in business.

    You need to keep the following records in relation to your cryptocurrency transactions:

    • the date of the transactions
    • the value of the cryptocurrency in Australian dollars at the time of the transaction (which can be taken from a reputable online exchange)
    • what the transaction was for and who the other party was (even if it’s just their cryptocurrency address).

    The sorts of records you should keep include:

    • receipts of purchase or transfer of cryptocurrency
    • exchange records
    • records of agent, accountant and legal costs
    • digital wallet records and keys
    • software costs related to managing your tax affairs

    Keeping good records will make it easier to calculate and meet your tax obligations, and if you are in business, they will assist you to manage your cash flow and see how your business is doing.

    You can use an accountant or third-party software to help meet your record-keeping obligations and working out your tax.

    See also:

    Additional information

    More information on tax treatment of bitcoin and cryptocurrencies like bitcoin can be found in the Taxation Determinations below:

    • TD 2014/25 Income tax: is bitcoin a ‘foreign currency’ for the purposes of Division 775 of the Income Tax Assessment Act 1997 (ITAA 1997)?
    • TD 2014/26 Income tax: is bitcoin a CGT asset for the purposes of subsection 108-5(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?
    • TD 2014/27 Income tax: is bitcoin trading stock for the purposes of subsection 70-10(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?
    • TD 2014/28 Fringe benefits tax: is the provision of bitcoin by an employer to an employee in respect of their employment a property fringe benefit for the purposes of subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986?

    Additional information from ASIC and AUSTRAC may be useful for anyone looking to invest or transact in cryptocurrencies:

    • ASIC’s Money Smart websiteExternal Link has some useful information on the risk involved in investing in cryptocurrencies.
    • AUSTRAC’s website also has useful information on implementing amendments contained in the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017 released for public consultation.
      Last modified: 30 Mar 2020QC 42159