Australia: ATO guide on tax reporting of cryptoassets
When any cryptoasset is disposed of, the disposal must be reported for capital gains tax purposes.
Guide on tax reporting in connection with the buying, selling or investing in cryptoassets
The Australian Taxation Office (ATO) released a guide on tax reporting in connection with the buying, selling or investing in cryptoassets.
The ATO in July 2022 previously issued guidance to help taxpayers understand their tax obligations with regard to cryptoassets. Read TaxNewsFlash
The ATO defines cryptoassets as “a digital representation of value that you can transfer, store or trade electronically,” which includes non-fungible tokens (NFTs).
The guide provides that when any cryptoasset is disposed of, the disposal must be reported for capital gains tax purposes. The disposal of a cryptoasset is when it is:
- Exchanged for another cryptoasset
- Traded, sold, gifted, or donated
- Converted to a fiat currency (a currency established by government regulation or law)—for example, to Australian dollars
However, transferring cryptoassets from one digital wallet to another digital wallet of the same taxpayer is not considered disposal.
The ATO recommends keeping records for every transaction associated with buying, holding, and disposing of cryptoassets for at least five years after disposing it.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.