Australia – crypto as a capital gains tax asset
The latest guidance from the Australia Taxation Office describes crypto as not a foreign currency, but a CGT asset.
Yes. Bitcoin is a ‘CGT asset’ for the purposes of subsection 108-5(1) of the Income Tax Assessment Act 1997 (ITAA 1997).TD 2014/26
Many CGT assets are easily recognisable, for example, land, shares in a company, and units in a unit trust. Other CGT assets are not so well understood such as contractual rights, options, foreign currency, cryptocurrency and goodwill. All assets are subject to the CGT rules unless they are specifically excluded.What is a CGT asset?
Depending on how long and for what purpose you hold cryptocurrency, you can classify your crypto transactions as an investment.
Yes. Bitcoin, when held for the purpose of sale or exchange in the ordinary course of a business, is trading stock for the purposes of subsection 70-10(1) of the Income Tax Assessment Act 1997 (ITAA 1997).TD 2014/27
If you hold the cryptocurrency as an investment, you will not be entitled to the personal use asset exemption. However, if you hold your cryptocurrency as an investment for 12 months or more, you may be entitled to the CGT discount to reduce a capital gain you make when you dispose of it.Cryptocurrency as an investment