With tax time just around the corner, here are 5 resources you can use to start preparing your Australian cryptocurrency taxes now, and get filing once July 1st rolls around.
1. ATO crypto rules
Australia is the lucky country yet again with a tax authority that’s published clear guidelines on how crypto is taxed. This is not always the case, so let’s be happy that in Australia we know where we stand. The ATO has it all covered, but in classic government fashion, the content is dry-as. For the official take on crypto, see 'Tax treatment of cryptocurrencies' here, or skip ahead to these sections:
A second ATO run resource is their community forum, with a dedicated space for crypto discussions. See their community Knowledge Base here.
2. Australian cryptocurrency tax guide
Koinly offers a regularly updated guide on Australian crypto tax. In it you’ll find just about everything you need to know including the latest ATO requirements, and a detailed guide on how crypto is taxed across different scenarios, like selling cryptocurrency, crypto mining, stakes, forks, and the personal use asset rule, as it applies to crypto. Koinly's guide is built on the ATO’s latest crypto guidance.
Read Koinly's Australian Cryptocurrency Tax Guide here.
3. Online Accounting Services
Not mad on sitting down with an accountant to prepare and file your tax return? Online tax software combined with an accurate cryptocurrency statement, is the way to go. Filing on the ATO's myTax portal is one way to fly solo, but we also like guided DIY services like H&R Block, Etax and Online Tax Australia. These paid services let you do your taxes online via desktop or mobile and offer guidance and support along the way.
You can upload receipts throughout the year, and then towards tax time, upload your payslips, health insurance tax certificate and of course, crypto records. Simply download your crypto tax report from Koinly - you’ll want the ‘Complete Tax Report”. Add the totals from your report to the ‘other income’ section of your tax filing process.
Filing with myTax? See this handy 2021 myTax guide from the ATO.
4. Koinly crypto tax records and reports
Keeping track of each and every crypto trade, and the value in Australian dollar at the time of buying or disposing, is a giant headache with tons of opportunity for error. Koinly takes care of record keeping by safely connecting to your wallets and exchanges like CoinJar, CoinSpot, Binance, Digital Surge, Swyftx, Independent Reserve and 300+ exchanges.
Once you’ve connect Koinly to your crypto platforms, your data will import and update automatically. This gives you a single-view portfolio of all your crypto coins and trades.
You can also use Koinly to calculate and generate an ATO-compliant tax report with capital gains and income summaries. Using a crypto tax calculator like Koinly will save you hours, but more importantly, will save you from reporting inaccurate figures.
5. ATO early engagement team
Still not sure if your crypto trades are taxable, or how they should be taxed or classified? The ATO offers a service to traders with unique tax questions. You can request an early engagement discussion if you need advice for a complex transaction you are considering, or have already done. You can arrange a call with the ATO's early engagement team to:
- discuss your request and outline the early engagement process
- seek your timeframes and critical dates
- explore the tax issues you are seeking advice on
- arrange an initial discussion or meeting
- agree on respective roles and responsibilities
- request a draft application for a ruling, where relevant, with full and true disclosure and relevant supporting information.
Small business and individuals can access the early engagement team here.