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Is Cryptocurrency Taxed In Australia?

Are you are wondering if cryptocurrency is taxed in Australia? If you are, let me tell you at the very outset, it depends on your use of it.
Yes indeed; there are taxes levied on cryptocurrencies in Australia, but the tax bracket is determined by what exactly you are using your crypto for and how you obtain it.
Cryptocurrencies are quite the rage in Australia, which has led to more interest by the government in formalizing a proper tax procedure, for those dealing in crypto.
Let’s take a look below at the different kinds of taxes that people need to pay for their cryptocurrency holdings.
You May Also Read:  Everything About Cryptocurrency Taxes
Cryptocurrency Taxes in Australia
Now the government has clearly distinguished between the kind of crypto use that will invite taxes and the kind that will not.
It has been explicitly stated on the ATO’s webpage on the  tax treatment of cryptocurrencies in Australia ,that cryptocurrency acquired and used for personal enjoyment, cannot be taxed.
To be termed under the personal use category, the crypto should not have been used as an investment
in a profit-making scheme, or in the course of carrying on a business.
Following are two brilliant examples provided by the Australian government, to help explain the difference between personal use and non-personal use.

Michael wants to attend a concert. The concert provider offers discounted ticket prices for payments made in cryptocurrency. Michael pays $270 to acquire cryptocurrency and uses the cryptocurrency to pay for the tickets on the same day. Having regard to the circumstances in which Michael acquired and used the cryptocurrency, the cryptocurrency is a personal use asset.
Peter has been regularly keeping cryptocurrency for over six months with the intention of selling at a favourable exchange rate. He has decided to buy some goods and services directly with some of his cryptocurrency. Because Peter used the cryptocurrency as an investment, the cryptocurrency is not a personal use asset.

With that clarity regarding what’s taxable and what’s not, let’s move ahead. There are a few different uses of cyptocurrency which determines the tax to be paid.
The first one is whether or not you are holding on to cryptocurrency as an investment. Because if you are, you will be called upon to pay capital gains tax on any profits when you sell them.
For traders, there is no way to escape avoiding taxes.If one is trading them for a living, then that becomes
your responsibility to pay taxes on that too.
Here Are Few Articles For You To Read Next:

Do You Need To Pay Crypto Taxes in the UK?
Things You Should Know About Cryptocurrency Taxes
How To Buy Bitcoins in Australia?

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