The Australian Taxation Office (ATO) has made it mandatory for Australian citizens to declare in their tax reports the profit (or loss) from transactions with digital assets.
As emphasized in statement departments, tracking transactions with cryptocurrencies has become one of the main tasks of the tax service. Separately, it is emphasized that the falsification of data on transactions with digital assets will lead to “harsh consequences”. Digital assets mean not only cryptocurrencies, but also collectible tokens. In case of profit, traders will have to pay tax, while long-term investors (people who have held the asset for more than 12 months) will pay tax at a reduced rate.
As ATO Assistant Commissioner Tim Loh said, the agency has a clear understanding of investment activities related to digital assets. He urged all Australians who have invested in cryptocurrencies to keep careful records to avoid any fines:
“We receive a lot of data, including information about rental income, income from foreign sources and income from stocks, cryptocurrencies or other property. But citizens must fill out the relevant reports on their own.”
Tim Loh noted that the IRS expects “a significant increase in the number of reports of transactions with cryptocurrencies.” At the same time, the assistant commissioner emphasized that Australians would not be able to reduce their payroll tax due to losses in the cryptocurrency market:
“Given the amount of data we receive, we are well aware that many Australians are buying, selling or exchanging digital currencies. It is important that they understand that these transactions are subject to tax reporting.”
In early April, the Australian Prudential Regulatory Authority (APRA) warned banks about the risks of trading cryptocurrencies.
Source: Bits
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