Australian Tax Guide to Cryptocurrency
Investing in cryptocurrency? At H&R Block we want to help you prepare and understand how cryptocurrency investments are taxed, so you can avoid any possible penalties, issues or audits down the line. Find all the answers you need to get you started in our free Australian tax guide to cryptocurrency below.
In this guide you'll find:
- What happens if I make a loss?
- Sell or Swap: Does this give rise to a tax charge?
- Timing sales to be more tax effective
- What is the 'personal use' exception?
- Trading Cryptocurrency
- Mining Cryptocurrency
- Record Keeping
- GST and cryptocurrency
- Will the ATO find out about my cryptocurrency dealings?
Download the Australian Tax Guide to Cryptocurrency
Cryptocurrency Investor Tax Obligations
Cryptocurrencies, including Bitcoin, Ethereum and Cardano just to name a few, have been the top retail investment trend of recent years. And this boom has opened the door to substantial gains (and losses) for investors over short periods of time.
Many investors are now grappling with the complexities of cryptocurrency and its tax obligations. Common questions include: Which currencies to trade? Which exchanges to use? How to profit from buy/sell/swap transactions? And how to use it as a payment currency? What records do you need to keep?
Most importantly: What are the tax implications of cryptocurrency gains and losses? This is often poorly understood by most people, partly because the effects may not be felt until long after the trade date. Contrary to what some might believe, the anonymity of cryptocurrencies in the anonymous digital world, does not translate to the license to ignore tax obligations. The ATO has warned that data from banks, financial institutions and online exchanges can, and will be tracked back.
There’s a lot to consider, so to help you get started we’ve put together this introductory guide to tax and cryptocurrency. With 50+ years of Australian tax expertise, we’re the right people to help you with your cryptocurrency and tax questions.
It’s a must-read for all cryptocurrency traders and investors. Download the guide today.
Benefits of using a Cryptocurrency Tax Agent
Maximise your tax return – a key part of our tax agent’s role is to ensure you claim every deduction you’re entitled and provide tailored crypto tax advice.
Avoid penalties or audits – The ATO has warned that tax evaders will be tracked and penalised. Making sure you fulfil your tax obligations now will help avoid audits down the line.
Reduce time & stress – The way cryptocurrency is taxed is constantly evolving and may be difficult to keep up with for an average crypto buyer. Submitting your tax return with an tax agent can reduce this stress and give you more time back to do more of what you love.
It’s tax-deductible – Best of all, the cost of doing your tax return with a tax agent is a tax deductible expense for the following year.
What H&R Block & CryptoTaxCalculator's partnership means for you
CryptoTaxCalculator Tax Reports are included with your H&R Block tax preparation fee through your local office. This applies for both in office and phone appointment.
For Online Tax Express clients, who use H&R Block software to prepare their tax return, CryptoTaxCalculator can be accessed at a 50% discount to their regular fee. Click here for details.
Want to speak with a tax expert?
Book an appointment today and let us help you minimise your capital gains tax and realise any losses from cryptocurrency. For more detailed information please speak to one of our experienced tax consultants.