Law

Things to Know About Bitcoin and Cryptocurrency Taxes in Australia

With the world’s fourteenth largest economy, Australia is one of the highly developed counties in the world. Also, with the world’s 10th highest per capita income, Australia also has a high-income economy. A leading migration lawyer in Perth has stated that, with the immigrants accounting for 29% of the population, now Australia has the world’s eighth largest immigrant population. As a result, the Australia’s government acknowledged that cryptocurrencies will be legal from now on (In 2017). And specifically the government stated that Bitcoin should be treated as property, and subject to Capital Gains Tax. Yes, cryptocurrencies and exchanges are legal in Australia now, and the country’s progress in its implementation of cryptocurrency regulations is huge.So, as an Australian citizen, you can use a cryptocurrency exchange to buy, sell and trade cryptocurrencies such as Bitcoin (BTC) and Ether (ETH). Recent research says, the activity in cryptocurrency markets has increased significantly and prices of cryptocurrencies have risen rapidly. Did you know crypto had a more than $600 billion combined market cap, and as a result, people in all over the world became more aggressive in the investing by the end of 2018?

Cryptocurrency Taxation

“Do we owe taxes on cryptocurrency?” Probably this may be your question if you are a newbie of crypto investor! You are not alone! It is a million-dollar question, which many crypto investors and crypto newbies ask. The answer is here!

Yes, under Australia’s goods and services tax (GST), cryptocurrencies had been subject to a controversial double taxation. The Australian government also proclaimed that Australia “on double taxation for the digital currency we take the initial law from September 20, 2017”. According to the Australian government, the practices of taxing the purchase of cryptocurrencies like Bitcoin’s legal bill came to the end.  If you are in need of help in taxation, you can hire a leading tax lawyer in Perth to safe guard you and your digital coins.

How Australian Tax Office (ATO) Track Down Cryptocurrency Investors?

The ATO is taking some measurable steps for regulating and controlling the taxable growth and expenditure with cryptocurrencies. For tracking down the anti-money laundering commitments, bilateral tax treaties, and most importantly the cryptocurrency investors, the ATO have been using the data-matching and “100-point identification checks” techniques. This makes keeping the cryptocurrencies in line with their policies.

Taxable Cryptocurrency Transactions

There are a set of conditions that exist today where taxation comes into play with Cryptocurrency. Some of them are,

  1. Buying services or goods using cryptocurrency
  2. For other cryptocurrencies, trading cryptocurrency: This means like, for Ripple (XRP), trading Litecoin (LTC).
  3. For fiat currency, selling cryptocurrency: This is treated as a capital gain, which is similar to selling your stocks shares.

Don’t wait for the IRS to notify you. If you fail to address your capital gains tax, you leave yourself open to late payment fees.

Are you in need of assistance in dealing with the taxation? Hire the best tax lawyer in Perth who reporting on virtual currency today! They help you in each and every step in taxation.

If you are looking for a reputable law firm to hire as killed tax litigation attorney in Perth, contact Munro Doig Lawyers!