The ATO has announced after public consultation the ATO has updated their guidelines on tax treatment of crypto-currencies.  The ATO’s guide on the ATO website now states:

“The term crypto-currency is generally used to describe a digital asset in which encryption techniques are used to regulate the generation of additional units and verify transactions on a blockchain. Crypto-currency generally operates independently of a central bank, central authority or government.

The creation, trade and use of crypto-currency is rapidly evolving. This information is our current view of the income tax implications of common transactions involving crypto-currency. Any reference to ‘crypto-currency’ in this guidance refers to Bitcoin, or other crypto or digital currencies that have the same characteristics as Bitcoin.

If you are involved in acquiring or disposing of crypto-currency, you need to be aware of the tax consequences. These vary depending on the nature of your circumstances.

Everybody involved in acquiring or disposing of crypto-currency needs to keep records in relation to their crypto-currency transactions.

If you have dealt with a foreign exchange and/or crypto-currency there may also be taxation consequences for your transactions in the foreign country.”

For more information talk to us. We’re here to help. Or email your query or appointment request by clicking here.

For the ATO guidelines go to—specifically-bitcoin/

The ATO also provides guidelines on the following:

  • SMSF investing in crypto-currencies
  • GST and digital currency
  • transacting with crypto-currency
  • Crypto-currency in business
  • record keeping
  • additional information

See also ASIC’s Money Smart website that has useful information on the risk involved in investing in crypto-currencies.