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Edited version of your written advice
Authorisation Number: 1051496792450
Date of advice: 20 March 2019
Ruling
Subject: Cryptocurrency
Question
Is the gain made on the sale of cryptocurrency to be treated on capital account?
Answer
Yes. The commissioner has reviewed your cryptocurrency activities and considered them to be an investment. Your cryptocurrency assets are considered capital gains tax (CGT) assets. Any gains resulting from the disposal of cryptocurrency would be income as a capital gain and any losses sustained would be a capital loss.
This ruling applies for the following period:
Year ended 30 June 2018
The scheme commences on:
01 July 2017
Relevant facts and circumstances
You have previously acquired Cryptocurrency assets
You completed transactions via BTC markets
You completed transactions via Independent Reserve
You have participated in cryptocurrency software projects
You have made a gain
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 8-1
Income Tax Assessment Act 1997 section 102-5
Income Tax Assessment Act 1997 section 102-10
Income Tax Assessment Act 1997 section 995-1
Income Tax Assessment Act 1997 section 35-10
Income Tax Assessment Act 1997 section 35-30