With the extraordinary growth of cryptocurrencies and the blockchain ecosystem in Australia, we at Cryptotax are reaching out to help you understand the current view that the ATO has on cryptocurrencies.
With the extraordinary growth of cryptocurrencies and the Blockchain ecosystem in Australia over the past years, Cryptotax works closely with the community to help you understand the current view that the Australian Taxation Office (ATO) has on cryptocurrencies and to ensure investment structures are established to best suit your needs.
CryptoTax, founded in 2017, was Australia's first dedicated accounting and tax advisory firm for the cryptocurrency community.
Their dedicated team is led by Partner-in-Charge, Andrew Bragg, based out of their Dandenong Mornington Peninsula offices. They are recognised as a technically astute and perceptive firm that delivers tailored, practical outcomes to its clients. Working closely with them, they quickly gain a thorough understanding of their complete tax position and provide solutions that are technically sound, practical and commercial.
Additionally, they provide regular expert commentators and presenters on cryptocurrency tax issues and are members of the commentary panel at the Blockchain Centre.
They recognise that when it comes to cryptocurrency, the best advice for your cryptocurrency portfolio is to base your decisions on investment merit, not on trying to save tax. Even so, there are taxation consequences for everyone with a crypto investment portfolio, so when a ‘grass is greener' tax option seems possible, it can be very tempting to chase after it.
CryptoTax tailors their tax advice to the individual needs of their client, whether you’re an individual using a cryptocurrency (for example, as a way to buy goods and services for your own personal consumption), an investor (someone who is frequently buying and selling investment instruments with a goal of generating returns that outperform buy-and-hold investing) or mining cryptocurrencies.
The difference in tax treatment depends on the intention of the investor, and that is where it can get complicated and having an expert advisor can be beneficial. While some guidelines provided by the Australian Taxation Office (ATO) suggest you won’t be subject to income tax for any increase on the value of the cryptocurrency, any profit you make should be included in your assessable income. This is on the basis that the ATO considers you to be carrying on a business.