Australian Taxation Office to Focus on Capital Gains From Crypto Assets – Taxes Bitcoin News

Australian tax authorities have listed crypto-related profit among several priority areas. More work is needed to make sure correct reporting. Taxpayers are reminded by the authority that they must calculate capital gains and losses from selling digital tokens or coins, and report it to their taxes.

Australian Taxpayers Warning They Must Report Crypto Gains

The Australian Taxation Office (ATO), has revealed four main areas that it will concentrate its attention on this year. They include recording-keeping, work-related costs, rental property income, and deductions. The list includes ensuring better oversight of the reporting capital gains from shares and property.

“The ATO is targeting problem areas where we see people making mistakes,” Assistant Commissioner Tim Loh has been quoted as noting. High-ranking officials stressed the need for taxpayers to reconsider their claims, and adhere to applicable laws.

Australians will be notified by the tax authority that crypto assets (including non-fungible tokens) must be disposed of this year. They’ll need to record any capital gain and loss in their taxes. Loh said:

Crypto is an asset that’s very much in demand. We expect more capital gains to be reported this year as well as capital losses.

The assistant commissioner remarked that the ATO knows that many Australian residents are buying, selling, or exchanging digital assets, so it’s important that people understand what this means for their tax obligations. He reminded taxpayers that crypto losses cannot be offset against their salary and wages.

The agency’s decision to focus on the reporting and taxation of gains from crypto investments comes after a recent study revealed that more than a million Australians, or 5% of those aged 18 and over, own one or more cryptocurrencies. Roy Morgan market research company says that young men in Australia are most likely to be cryptocurrency owners.

Are you expecting Australia to receive more tax revenue from crypto related capital gains in the next year? Please leave your comments below.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.