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Edited version of private advice
Authorisation Number: 1052095598784
Date of advice: 9 March 2023
Ruling
Subject: Cryptocurrency investment
Question
Are you a cryptocurrency investor through your activities in a cryptocurrency mining program?
Answer
Yes.
The overall impression gained from the facts provided is that you were not carrying on cryptocurrency trading, rather the activities is that of an investor who has acquired assets, via a mining subscription plan, to take advantage of future growth of the assets.
To find out more information on reporting your cryptocurrency investment go to our website www.ato.gov.au and search for Quick Codes:
• QC 69945
• QC 69947
• QC 69952
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You do not hold an Australian Business Number (ABN).
You carried on cryptocurrency mining services for a specified period during the relevant financial year.
You purchased graphic cards and rented out your GPU processing power to a mining pool to earn income over time.
You earnt income from the activity as a transaction every few hours.
You provided us with your Koinly transport report for the relevant financial year which showed less than 200 transactions with the majority of your transactions occurring over a 6 week period during the relevant financial year.
You invested a small amount of money into your cryptocurrency mining activity.
You did not have any previous experience in shares or cryptocurrency.
You decided to invest in cryptocurrency mining as it had the potential for profit.
You did not complete any courses or obtain expert advice. You went with your gut instinct.
You did not have a business plan.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-10
Income Tax Assessment Act 1997 Part 3
Income Tax Assessment Act 1997 section 995-1