We dig into whether the ATO actually tax you for buying and selling crypto
The Australian Tax Office has come out swinging, saying it is coming after crypto investors this financial year.
The crypto market has enjoyed gigantic rises in value in 2021 - and 44% of Aussie millennials are now dabbling in the crypto market.
One of the main drawcards of cryptocurrency is the anonymity of ownership - so it will be interesting to see how the government finds out who owns what and if people will take on the ATO and try hide its earnings.
The ATO is classifying digital currency (such as crypto) as an asset, like shares or a house. Therefore, if crypto is sold at a profit, it is subject to a tax law named 'Capital Gains Tax'.
While the ATO has made its decision re crypto taxes, it still remains a grey area because nobody has tested the ATO's ruling in a court of law.
If you just buy and HOLD ON FOR DEAR LIFE, then you don’t need to pay tax on your crypto, even if the value of your portfolio increases (or decreases) significantly.
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