The ATO is clear that you need to file your crypto taxes alongside your annual tax return by the 31st October each year. But calculating and filing crypto taxes is a lot trickier than filing your standard tax return. Fortunately, there’s plenty of excellent tax software for Aussie taxpayers to utilise to make crypto taxes a breeze. Here’s our list of the best Australian tax software for crypto investors - whatever your investments.
Essential tax software: Koinly
Before you even think of filing your ATO tax return… you need to know what your taxable position is in regard to crypto.
This means you need to identify all your taxable transactions from each exchange, wallet and blockchain you use and then calculate your short-term and long-term capital gains and losses, as well as the fair market value of any crypto income in AUD on the day you received it.
For most investors, big or small, this is a headache. Tracking your cost basis across the various exchanges you use alone is tricky, but separating your short-term and long-term capital gains and identifying the fair market value of tokens (in AUD) considered income on the day you received them… even harder.
Fortunately, crypto tax software like Koinly makes this simple. All you need to do is sync the wallets, exchanges and blockchains you use via API or by uploading a CSV file of your transactions and then your crypto tax calculator does all this for you, generating an ATO compliant tax report that’s available to download whenever you’re ready to file.
Of course - we’re not the only crypto tax software company out there, but we’re free to try if you want to shop around. You’ll only need to pay at the point that you want to download your ATO tax report. Better still, you can even claim your Koinly plan as a deduction.
Essential tax software: myTax
Once you’ve got your crypto tax report - to actually file you’ll need the ATO’s myTax portal. It’s a lot easier than filing by paper forms and the government’s online portal is simple and straightforward, even with crypto taxes considered.
You’ll need your crypto tax report from your chosen crypto tax software to file with myTax. Once you’ve got it, just declare your capital gain/loss in the capital gains tax section, your crypto income in the other income section and any relevant deductions in the deductions section.
While the ATO has some great guidance on crypto taxes, if you’re trading in the DeFi space, crypto tax can quickly get complicated. The guidance is limited and it is often not entirely clear whether some transactions would be considered income or a capital gain - it all comes down to how your specific DeFi protocol works. This matters because you don’t want to overpay (or underpay and get hounded later).
If you’ve got some convoluted crypto transactions, professional tax preparation help is the best port of call. There are, of course, specialised crypto accountants in Australia, but you can also opt for a more scaled solution in the form of H&R block. Getting the professional advice you need about your specific transactions can help you file your tax return and rest easy knowing you’ve met your tax obligations - and hopefully even lowered your tax bill as much as possible!
The information on this website is for general information only. It should not be taken as constituting professional advice from Koinly. Koinly is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances. Koinly is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.