The ATO have released a statement ahead of the end of the 2021-2022 financial year on the 30th of June 2022 saying that crypto is a key priority for them this tax season. Find out what the ATO said about crypto tax and how to make filing a breeze.
The ATO has released a statement outlining their priorities ahead of the end of the financial year on the 30th of June 2022 - and crypto is one of them.
The statement outlines the tax treatment of crypto, asserting, "If you dispose of an asset such as property, shares, or a crypto asset, including non-fungible tokens (NFTs) this financial year, you will need to calculate a capital gain or capital loss and record it in your tax return.”
Assistant Commissioner Tim Loh says, "Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year. Remember you can’t offset your crypto losses against your salary and wages.
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."
The ATO says with crypto assets as one of their key priorities for this financial year, this will ensure there is an appropriate level of scrutiny on correct reporting.
Mr Loh clarifies that the reason for identifying crypto as one of their key priorities this tax season is as it's one of the areas the ATO commonly sees taxpayers making mistakes.
This isn't the first time the ATO has focused on crypto - they issued a crypto tax reminder letter in 2021 to around 100,000 taxpayers. It is likely many taxpayers will see similar letters this year after the EOFY.
The ATO is clear not only that crypto is subject to Capital Gains Tax or Income Tax, (learn more about that in our Australia crypto tax guide) but also that investors should keep good records of their crypto investments in case of an audit. They recommend using professional tax software - like Koinly - to do so.
Use ATO-compliant crypto tax software like Koinly
Koinly can help you with your crypto tax, whatever your investments. We work with more than 450 exchanges, wallets and blockchains - including popular Australian exchanges like Binance Australia, Coinbase, CoinJar, CoinSpot, Digital Surge and Swyftx to name just a few!
All you need to do come tax time is import your crypto transaction data across all the wallets, exchanges and blockchains you use via API or by uploading a CSV file of your transaction history.
Once Koinly has your transaction data, it'll calculate your cost basis, short-term and long-term capital gains and losses, the fair market value of any crypto income and even any additional expenses. All this information is ready for you to view (free of charge!) in your tax summary.
Once you’re ready to file, just upgrade to a paid Koinly plan from $49 download the ATO myTax report and file using the ATO myTax service. Your ATO myTax reports makes filing your crypto taxes simple, with all the figures you’ll need ready to input into your tax return - but if you get stuck… we’ve got a guide on exactly how to file using your Koinly report and the ATO myTax service!
Sign up to Koinly free today.