The Australian Tax Office (ATO) is intensifying scrutiny on individuals who have realized profits from cryptocurrency before the fiscal year ends on June 30, as taxpayers prepare to submit their returns by month’s end.
Adam Saville-Brown, Koinly’s general manager for crypto tax reporting software, emphasized the ATO’s ongoing focus on crypto, stating, “The ATO has been vigilant about crypto in recent years, and this year is no different.”
According to Michelle Legge, head of tax education at Koinly, the ATO has upgraded its crypto data matching initiative to encompass data from 2014 to 2026 sourced from all legally operating crypto exchanges in Australia. “Whether using Binance, Coinbase, CoinSpot, or any other exchange, the ATO will gather your information,” Legge confirmed.
The program aims to gather comprehensive data annually from 1.2 million crypto investors, including names, addresses, emails, social media profiles, and IP addresses.
Saville-Brown noted that while most crypto investors in Australia are aware of their tax obligations, the enhanced program could ensnare those who fail to comply.
Those failing to report accurately may receive a notice from the ATO prompting them to rectify their crypto transaction reporting.
Confusion may arise regarding tax implications from Celsius refunds, particularly concerning Bitcoin (BTC) and Ether (ETH) repayments, as the ATO’s guidance lacks clarity on handling these situations, Saville-Brown explained.
Crypto deposits trigger taxable events, potentially resulting in gains, contingent on the initial purchase price. Legge highlighted uncertainty among investors about calculating gains or losses and determining the appropriate cost basis.
Regarding the newly introduced Bitcoin exchange-traded funds (ETFs), Legge clarified that investors will be subject to Capital Gains Tax upon selling holdings, notwithstanding the positive impact of these products on crypto adoption in Australia.
For accurate tax assessments, Saville-Brown recommended consulting with an experienced accountant, given the potential for refunds to either incur taxable gains or losses.
In conclusion, while the advent of Bitcoin ETFs on the Australian stock market signals progress for cryptocurrency adoption, it also underscores the necessity for investors to prepare for associated tax liabilities.
For more insights, check out our article on the best and worst countries for crypto taxes — plus expert crypto tax tips.