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Edited version of private advice
Authorisation Number: 1052212549467
Date of advice: 13 February 2024
Ruling
Subject: Cryptocurrency - temporary resident
Question 1
Are you a temporary tax resident?
Answer
Yes. You satisfy the conditions to be a temporary resident.
Question 2
Is the cryptocurrency you hold taxable Australian property?
Answer
No. The cryptocurrency you hold is not among the list of categories of taxable Australian property specified in section 855-15 of the Income Tax Assessment Act 1997 (ITAA 1997).
Question 3
Is any capital gain or loss you make due to the disposal of your cryptocurrency disregarded?
Answer
Yes. Section 768-915 of the ITAA 1997 disregards capital gains and losses that temporary residents make when CGT event A1 happens to assets that are not taxable Australian property.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You and your spouse are citizens of an overseas country.
You arrived in Australia in 20XX with your spouse arriving in 20XX.
You and your spouse both hold temporary resident visas.
You nor your spouse are Australian residents within the meaning of the Social Security Act 1991.
You purchased several types of cryptocurrencies.
You intend to hold onto these cryptocurrencies and dispose of them at a later time.
Assumption
For the purpose of this ruling it is assumed that you are not carrying on a cryptocurrency trading business.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 995-1
Income Tax Assessment Act 1997 section 768-915
Income Tax Assessment Act 1997 section 855-15