Previously, the ATO released a statement ahead of the end of the 2021-2022 financial year on the 30th of June 2022 saying that crypto was a key priority for them last tax season. Again ahead of the end of the 2022-2023 financial year, the ATO has once again highlighted Capital Gains Tax as one of their key focuses and specifically called out crypto assets. Find out what the ATO said about crypto tax and how to make filing a breeze.
The ATO focus areas have been released ahead of the 2023 tax season, and Capital Gains Tax has been highlighted as a key focus - with crypto being specifically called out in the press release.
The release states, "Capital gains tax (CGT) comes into effect when you dispose of assets such as shares, crypto, managed investments or properties. To ensure you are meeting your obligations and paying the right amount of tax, you need to calculate a capital gain or capital loss for each asset you dispose of unless an exemption applies."
ATO Assistant Commissioner Tim Loh says, "‘Don’t fall into the trap of thinking we won’t notice if you sell an asset for a gain and don’t declare it."
Last year, the ATO released a statement outlining its priorities ahead of the end of the financial year on the 30th of June 2022 - and crypto was one of the key focuses.
The statement outlined 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 said, "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 said with crypto assets as one of its key priorities for this financial year, it would ensure there was an appropriate level of scrutiny on correct reporting.
Mr. Loh clarified that the reason for identifying crypto as one of the ATO's key priorities last tax season was because it was one of the areas where the ATO commonly sees taxpayers making mistakes.
This wasn't the first time the ATO has focused on crypto - they issued a crypto tax reminder letter in 2021 to around 100,000 taxpayers.
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.
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!