Sydney

Australia’s taxman starts knocking on crypto investors’ doors

Posted on


The Australian Taxation Office (ATO) warned the country’s cryptocurrency investors to appropriately report any capital gains or losses from digital assets — including non-fungible tokens (NFTs) — in an announcement on Sunday ahead of the upcoming tax season, starting July 1.

See related article: Australian Tax Office warns: taxpayers on the hook for crypto tax earnings

Fast facts

  • Individual investors pay capital gains tax on cryptocurrency at the same rate they do their regular income tax, which can go to as low as 0% for income under AU$18,200 (US$12,700), or as high as 45% for earnings over AU$180,000 (US$126,000).
  • The ATO said it expects more capital gains and losses to be reported in the 2022 tax season due to the popularity of cryptocurrency and NFTs as digital assets.
  • As per ATO guidelines, recording a net capital loss allows a taxpayer to reduce a capital gain recorded later in the year, but cannot be offset against any other form of income.  
  • “Through our data collection processes, we know that many Aussies are buying, selling or exchanging digital coins and assets so it’s important people understand what this means for their tax obligations,” said ATO Assistant Commissioner Tim Loh in the announcement.
  • The ATO will also be focusing on capital gains/losses from property and shares, rental property income and deductions, work-related expenses, and proper record keeping.
  • Australia’s crypto investors were given a similar warning when the ATO directly contacted 400,000 investors to remind them of their tax obligations.

See related article: Australian Tax Office issues reminder of cryptocurrency tax obligations



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *