Cryptocurrency.
Aussies do like having a punt and it appears cryptocurrency is no different. Some 600,000 Australians have invested in crypto in recent years.
The Australian Taxation Office (ATO) is always interested in those that are profiting from any activities. In short, they want their share, and they are expecting to enlighten some 300,000 taxpayers of their responsibilities.
There are some comments in the marketplace that gains are not income, switching between different products or buying goods with crypto; doesn’t create a taxable gain. Clients should be aware that the disposal of a crypto in any form to do anything with the proceeds will create a taxable reckoning.
The ATO also has data matching protocols with many of the exchanges which provide information on you and your trading history.
Holdings of greater than twelve months should entitle you to a Capital Gain Discount (50%) which is of a considerable benefit in the determination of your tax payment.
Talk to us when doing your online Tax Return, GoTax can assist in these matters.