The ATO has made it clear that Australian taxpayers need to pay taxes on their crypto and declare their crypto gains and income as part of their annual tax return by the 31st of October 2023. Most taxpayers use the ATO's myTax portal to file... but you might not be quite sure on how to file your crypto taxes using myTax... so here's our step-by-step guide on how to file crypto taxes with myTax and Koinly.
Before we dive in...
Before you file crypto taxes - it helps to understand them. Learn everything you need to know about crypto tax in our Crypto Tax Australia Guide - or check out our video below.
How to file crypto taxes on myTax
Here are your step-by-step instructions on how to report crypto gains, losses, and income using ATO myTax.
Log in to your Koinly account and make sure it's set up correctly as above.
Go to the tax reports page and download the ATO myTax report. You'll need the figures from this report to file with myTax.
Log in (or create) your ATO myTax account from the my gov website.
Select manage tax returns.
Select the option for 2022/2023 return.
Make sure your personal information and contact details are correct, then press next.
Now check your financial institution details are up to date, then press next.
Under the personalise your 2022-23 return section, fill out your personal details as they apply to you.
For your crypto investments specifically, you may need to select three options in this section depending on your investments. For crypto capital gains or losses, check the box next to you had Australian interest, or other Australian income or losses from investments or property, then from the new drop down menu, check the box next to capital gains or losses that are not from a managed fund. For crypto income, check the box next to you had other income not listed above. For deductions, check the box next to you had deductions you want to claim, then from the new drop down menu, check the box next to other deductions.
Complete the rest of this section as it relates to you and then select next.
On the prepare your 2022-23 return page (step 4) page, select add/edit next to capital gains or losses.
In the box under total current year capital gains, copy and paste thefigure next to total current year capital gains in your Koinly ATO myTax report (in the capital gains summary section).
In the box under net capital gain,copy and paste the figure next to net capital gains after CGT discount in your Koinly ATO myTax report (in the capital gains summary section). Alternatively, if you only have a capital loss for the year, enter this figure into the box under net capital loss carried forward to later income years.
For the question, have you applied an exemption, rollover or additional discount, select no.
Press save and continue.
For crypto income, on the prepare your 2022-23 return (step 4) page, select add/edit next to other income.
Next to any other income, select add.
In the drop down menu under type of payment, select other.
For the description, write a description of your income - for example, staking rewards.
In your Koinly ATO myTax report, in the other income summary section, copy the figure next to total and paste this into the amount box.
Select save and then save and continue.
For deductions relating to crypto, on the prepare your 2022-23 return page (step 4)page, select add/edit next to deductions.
Next to other deductions, select add.
From the drop down menu under type of deduction, select deductions relating to financial investments.
For description, enter a description, for example, crypto expenses or margin fees. Be as detailed as you like as it applies to your investments.
In your Koinly ATO myTax report, you'll see a section titled expenses, copy the figure next to total. These are transactions tagged as costs by Koinly that are not included in your cost basis calculations and may be tax deductible, for example, margin fees.
If you want to claim your Koinly plan as a deduction, next to other deductions select add (again!).
From the drop down menu under type of deduction, select other deductions.
For description, enter an accurate description, for example, crypto tax software plan fee.
In the box under amount, enter the amount your Koinly plan cost you.
Complete the rest of your tax return as it relates to your investments.
Please note, if you've got more than $10,000 in capital gains, you'll also need to complete the Capital Gains Tax Schedule. You can learn more about how to do that here.
Prefer a video tutorial? Watch how to file with ATO myTax.
While the task of preparing your crypto taxes can seem quite daunting - especially if you traded on multiple exchanges - there are tools like Koinly which can make your life really easy.
Koinly does a number of things under the hood in order to calculate your capital gains and income. First it fetches the market rates at the time of your trades, then it matches transfers between your wallets and exchange accounts and finally it calculates your capital gains.
1. Connect your all exchanges, wallets and blockchains
Most exchanges have API's that can allow Koinly to download your transaction history automatically. You can also import CSV or excel files with your transaction history if you prefer that (or if your exchange does not have an API).
2. Ensure your account settings are correct for Australia
Your base currency should be AUD. The pre-selected cost-basis method is FIFO, which is correct and as per the ATO's requirements, but you can also use HIFO and LIFO as an individual investor. Select the date range you need to file for. The Australian tax year runs from July 1 to June 31 of the following year and you need to file before the 31st of October.
3. Head over to the tax reports page
Check out your tax summary to ensure it looks correct. Any issues? Chat to us.
4. Select and download your report
Koinly offers many downloadable tax reports. For Australia, the report you need to download is the ATO myTax report.
5. Follow the instructions above to file with myTax
Follow our instructions above and you're done with your crypto taxes for the year!
You'll find all the information you need to file your 2022-2023 tax return with ATO's myTax in the Koinly myTax report.
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.