Crypto currency investments have become popular. According to research from Roy Morgan, 5 per cent of Australian adults now own at least one cryptocurrency, while more than one in 10 Australians under 35 hold assets such as Bitcoin or Ethereum. However, despite what many people may think, the ATO pays attention to these forms of investments as there are obvious tax implications, even when you do not trade crypto in conventional currencies. The ATO Commissioner is reminding taxpayers that you must declare all capital gains and losses from this form of asset. The ATO has operated a cryptocurrency data-matching program for some time. This year it intends to look closely at those who deal in this area. It is better to be safe than sorry and to be fully transparent and declare any crypto transactions on your tax return.

Tips

• Use a crypto calculator to keep track of exchanges to make sure you are compliant.
• Make sure you have your tax saved for investments like these – use another account to save for tax time.
• Declare the assets and pay tax as appropriate. Dmca can assist you to trigger capital losses at beneficial times etc, but investing needs to be a transparent activity.