Australian Taxation Office to target cryptocurrency investors with audit warnings

Hundreds of thousands of Australians are set to receive a stern warning from the Australian Taxation Office in the coming weeks as the tax man takes on cryptocurrency traders.

The ATO is in the process of contacting up to 350,000 individuals either by letter or email to “remind them” of their taxation obligations when they trade in cryptocurrency, such as bitcoin.

Cryptocurrencies are considered to be a form of property and therefore an asset for capital gains tax purposes.

That means any financial gains made from the buying and selling of cryptocurrencies will generally be subject to capital gains tax and must be reported to the ATO.

Examples include selling, trading or exchanging cryptocurrency, converting it into Australian dollars or a foreign currency or using it to obtain goods or services.

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Source: Australian Taxation Office to target cryptocurrency investors with audit warnings