The Australian Tax Office (ATO) is intensifying its scrutiny of individuals who realized gains from cryptocurrency ahead of the fiscal year’s end on June 30, as taxpayers begin filing their returns before month-end.
“ATO’s focus on cryptocurrency has been steadfast in recent years, and this year is no exception,” remarked Adam Saville-Brown, general manager of crypto tax reporting software Koinly, to Cointelegraph.
The ATO has upgraded its crypto data matching initiative to gather data from 2014 to 2026 from “any legally operating crypto exchange in Australia,” explained Michelle Legge, Koinly’s tax education head.
“Whether using Binance, Coinbase, CoinSpot, or another platform, the ATO will collect your data,” she emphasized.
Under this program, the ATO anticipates acquiring information such as names, addresses, emails, and even social media profiles and IP addresses of 1.2 million crypto investors annually.
Saville-Brown noted that most Australian crypto investors are aware of their tax obligations, but the initiative “will likely ensnare those few who neglect compliance.”
Non-compliant investors may receive a letter from the ATO urging proper reporting of their crypto transactions, at minimum.
Celsius repayments may cause confusion
The ATO’s guidelines do not clearly define how to manage Bitcoin (BTC) and Ether (ETH) reimbursements from the bankrupt American crypto lender Celsius, leaving users “perplexed about potential tax implications,” Saville-Brown remarked.
Crypto deposits trigger taxable events, potentially resulting in gains based on the purchase price.
“What remains unclear to investors is how to calculate their gains or losses, particularly which figure to use as their cost basis,” Legge explained.
She added that the ATO has not issued guidance on whether investors should use standard accounting methods or alternatives, such as the original purchase cost for specific assets, or the asset value at a particular date, like the day withdrawals were restricted or the bankruptcy filing date.
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Saville-Brown advised consulting a knowledgeable accountant to determine tax liabilities, as refunds may result in taxable gains or losses.
Bitcoin ETFs add to tax obligations
Australia recently welcomed two spot Bitcoin exchange-traded funds (ETFs) this month, including one holding Bitcoin directly for the first time, alongside another launched on the country’s largest stock exchange, marking another debut.
However, existing laws apply to these new products, and investors “will incur Capital Gains Tax upon selling holdings from a Bitcoin ETF and making a profit,” Legge clarified.
“While the introduction of Bitcoin ETFs to the Australian stock market promotes broader cryptocurrency adoption, it also entails tax implications,” she added.
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