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Australian Tax Office Warns Crypto Investors on Capital Gains Obligations
The rate of capital gains tax on digital assets in Australia is determined by an investor's income tax rate.
The Australian Taxation Office (ATO) has published a warning to cryptocurrency investors, reminding them that capital gains and losses must be reported every time a digital asset, which includes non-fungible tokens (NFT), is sold.
- In light of the recent downturn in the crypto market, ATO Assistant Commissioner Tim Loh said that "crypto losses can't be offset" against an investor's salary or wages.
- “Crypto is a popular type of asset, and we expect to see more capital gains or capital losses reported in tax returns this year,” said Loh.
- “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,” Loh added.
- Australian citizens are not required to pay tax when purchasing cryptocurrencies, as long as the purchase is made with fiat currencies.
- Investors can get a 50% reduction in capital gains tax if they hold on to an asset for one year or more after purchase.
Oliver Knight
Oliver Knight is the co-leader of CoinDesk data tokens and data team. Before joining CoinDesk in 2022 Oliver spent three years as the chief reporter at Coin Rivet. He first started investing in bitcoin in 2013 and spent a period of his career working at a market making firm in the UK. He does not currently have any crypto holdings.
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