Amidst the current hype on bitcoin and other cryptocurrencies, one key question arises from our clients: Do I have to pay tax for my Crypto transactions? The answer will depend on how you acquired them and what they are used for.

Similar to Shares or Commodities – Profiting from Crypto maybe subject to Capital Gains Tax. This is because Crypto can be considered as an asset for Australian taxation purposes.

Using Crypto for business – Accepting Crypto as a form of payment in exchange for goods and services is treated in the same way as non-cash consideration received as part of a barter transaction and therefore subject to income tax and GST.

While at present the ATO may have difficulties tracking transactions once converted into cryptocurrencies, they do have the power to conduct a review and/or audit if they suspect unusual activity.

Our experience and understanding of Crypto, places us at the forefront in providing valuable advice and assistance to our clients.