For sophisticated investors looking to learn more about the tax implications of Cryptocurrency and explore tax effective structures.

For sophisticated investors looking to learn more about the tax implications of Cryptocurrency and explore tax effective structures.

Cryptocurrencies have transformed the investment landscape, gaining significant traction with ambitious investors. While the Australian Tax Office (ATO) initially estimated between 500,000 and 1 million Australians were investing in crypto in 2019, this figure has grown significantly as digital assets have too evolved.  

By April 2022, approximately 5% of Australia’s adult population was reported to hold cryptocurrency, including a notable proportion of sophisticated investors leveraging crypto assets for portfolio diversification. 

As the market has matured, so has the regulatory environment, making it essential for investors to

  • Understand the tax implications of their cryptocurrency activities. 
  • Face complex crypto tax compliance that has arisen due to high-volume trading, mining, or integrating crypto within broader wealth strategies.  
  • Receive professional cryptocurrency tax assistance from an experienced advisor. 
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Frequently Asked Questions

Yes, all crypto-related gains must be declared. The ATO actively monitors trading data from Australian and international exchanges.

Crypto gains are taxed at your marginal income tax rate or entity rate depending on where the crypto is owned. Long-term holdings may benefit from a CGT discount.

Yes, capital losses can only be used to offset gains, reducing your taxable income. They generally cannot reduce other normal income.

As cryptocurrency is not a regulated investment product in Australia, we are unable to provide investment advice regarding cryptocurrency. However, if you have invested in cryptocurrency in your Self-Managed Super Fund, our team can work with you to ensure you are meeting your compliance requirements.  

The ATO receives data from crypto exchanges, including international platforms, ensuring accurate reporting of all your cryptocurrency activities.

Navigating the tax implications of cryptocurrency trading can be complex and challenging, especially with the variety of activities involved, such as staking, receiving airdrops, transferring crypto between wallets, and trading across different platforms. The decentralised and often anonymous nature of crypto transactions can make it difficult to track gains, losses, and taxable events. With ever-evolving regulations surrounding digital currencies, understanding how each transaction impacts your tax obligations is crucial. 

At Armada, we specialise in unravelling these complexities by carefully analysing your crypto activity. We’ll take your transaction data and provide a comprehensive report detailing the tax information necessary for your tax return. Our service starts at $500 + GST for a report, and if you require personalised tax advice related to your crypto activities, consultations are also available from $500 + GST. Let us help you ensure full compliance and minimise any tax-related stress.

Yes, all crypto-related gains must be declared. The ATO actively monitors trading data from Australian and international exchanges.

Crypto gains are taxed at your marginal income tax rate or entity rate depending on where the crypto is owned. Long-term holdings may benefit from a CGT discount.

Yes, capital losses can only be used to offset gains, reducing your taxable income. They generally cannot reduce other normal income.

As cryptocurrency is not a regulated investment product in Australia, we are unable to provide investment advice regarding cryptocurrency. However, if you have invested in cryptocurrency in your Self-Managed Super Fund, our team can work with you to ensure you are meeting your compliance requirements.  

The ATO receives data from crypto exchanges, including international platforms, ensuring accurate reporting of all your cryptocurrency activities.

Navigating the tax implications of cryptocurrency trading can be complex and challenging, especially with the variety of activities involved, such as staking, receiving airdrops, transferring crypto between wallets, and trading across different platforms. The decentralised and often anonymous nature of crypto transactions can make it difficult to track gains, losses, and taxable events. With ever-evolving regulations surrounding digital currencies, understanding how each transaction impacts your tax obligations is crucial. 

At Armada, we specialise in unravelling these complexities by carefully analysing your crypto activity. We’ll take your transaction data and provide a comprehensive report detailing the tax information necessary for your tax return. Our service starts at $500 + GST for a report, and if you require personalised tax advice related to your crypto activities, consultations are also available from $500 + GST. Let us help you ensure full compliance and minimise any tax-related stress.

Why Work With Us?

You are bound to face unique challenges when managing a cryptocurrency portfolio – from understanding your tax obligations to optimising financial outcomes, our expertise will ensure your compliance while leveraging strategic tax opportunities. 

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Located conveniently in Osborne Park

Experience you can trust

Tax obligations for cryptocurrency in Australia

Why is crypto tax compliance essential for sophisticated investors?

  • Taxation on cryptocurrency in Australia is highly scrutinised by the ATO.  
  • The ATO has a particular focus on capital gains and losses reported in tax returns. 
  • Sophisticated investors with larger and more intricate portfolios, are particularly advised to ensure full compliance while optimising their tax positions. 

Key tax considerations:

Capital Gains Tax (CGT):

  • Selling cryptocurrency for is typically treated as a capital gain and taxed in the structure the crypto is owned. 
  • Long-term holdings (over 12 months) may qualify for a CGT discount.  
  • CGT calculations are complex, particular when it comes to cryptocurrency. 

Trading and Mining:

  • If you are engaging in high volumes of crypto trading and mining. Different tax treatments may apply, however any decision on this must be treated with caution given the ATO’s view on Crypto being an ‘investment’ rather than a ‘business’. 

Record-Keeping Obligations:

  • Maintain comprehensive records of transactions, wallets, and other financial details to meet compliance standards. 

All of the above scenarios are complex and require expert advice and you should consult with a specialist cryptocurrency accountant. 

Our Services

Our Cryptocurrency tax accountants provide the following service for Australian-based investors with substantial cryptocurrency portfolios: 

Cryptocurrency Portfolio Reporting

  • Comprehensive cryptocurrency reporting – essential for tax purposes.  
  • Reporting and reconciliation of complex crypto transactions. 

Record-Keeping Solutions

  • Advanced record-keeping systems to streamline tax preparation and provide clear visibility of portfolio performance. 

Cryptocurrency Tax Returns

  • Expert preparation and lodgement of tax returns, incorporating advanced strategies to optimise your tax position.
  • Our team stays at the forefront of crypto taxation, navigating the evolving landscape to provide high quality solutions.

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