Australia’s Crypto Tax Guidelines
The government of Australia wants to see from the public about its tax treatment of digital currencies.
On Monday the Australian Tax Office (ATO) said it has updated its guidelines for cryptocurrencies on Mar. 13, following an increase in queries from taxpayers. The result was that officials launched a public comment process to understand the practical issues experienced when complying with cryptocurrency tax obligations.
The agency explained on its website:
“In particular, we are interested in any practical issues that may impact on taxpayers’ abilities to calculate and substantial any capital gains and losses for (cryptocurrency) capital gains tax (CGT) purposes.”
The fact that capital gains from exchanging one cryptocurrency to another are subject to tax liabilities. The guidelines mandate that taxpayers provide details of these transactions, such as their value in Australian dollar, their purpose, as well as information about the timing and parties involved. Cryptocurrency taxation has been a contentious issue within Australia on a broader level. Previously, advocates and users broadly criticized the fact that both purchases of cryptocurrency and expenditures made with the tech triggered a goods-and-services tax (GST).
Lawmakers ultimately passed legislation last year that applies the GST treatment to cryptocurrencies in the same manner as foreign currencies.
