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Edited version of private advice
Authorisation Number: 1051670954247
Date of advice: 3 June 2020
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 they are an investment. Your cryptocurrency assets are capital gains tax (CGT) assets. Any gains resulting from the disposal of cryptocurrency would be taxed as a capital gain and any losses sustained would be a capital loss.
This ruling applies for the following period:
Year ended 30 June 2016
Year ended 30 June 2017
Year ended 30 June 2018
The scheme commences on:
01 July 2015
Relevant facts and circumstances
You have acquired Cryptocurrency assets with the intention of making long term gains
You completed a low number of transactions during the first income tax year
You made a gain during the first income tax year
You completed a low number of disposal transactions during the second income tax year
You made a gain during the second income tax year
You completed a low number of disposal transactions during the third income tax year
You made a gain during the third income tax year
You made a number of arbitrage trades in the third income tax year
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