Cryptocurrency tax Everything you need to know
                     Cryptocurrency tax: Everything you need to know
Cryptocurrency is like any other taxable asset. Though Cryptocurrency is growing in popularity, 
it is still largely misunderstood and considered complex. As Cryptocurrency slowly becomes 
mainstream and governments shift their gaze to digital assets, it is now essential to learn about 
crypto taxes. Here are a few noteworthy things you may want to know about Crytpotaxes:
All crypto sales and purchases are taxable
Cryptocurrency is considered a property and not just another type of currency. All gains and 
losses made with cryptocurrencies have to be reported to be ATO. Exchanging crypto curries for
another, converting it to Australian dollars, and spending Cryptocurrency is subject to capital 
gains tax and must be reported to ATO.
The ATO has been notifying cryptocurrency buyers, sellers, and miners that Cryptocurrency is 
taxable. Like every other type of tax fraud, avoiding cryptocurrency tax is punishable. You will 
be wise to consult with a tax accountant in Melbourne or otherwise to learn more about 
crypto taxes. 
Miners are also liable to taxes
Cryptocurrency mining is classified as self-employment. So cryptocurrency miners are also liable
to pay self-employment taxes. That said, miners can also deduct self-employment expenses like
electricity.
It is worthwhile to note that investors aren’t taxed for holding Cryptocurrency. Only selling or 
trading Cryptocurrency is a taxable event. Capital gain taxes apply to cryptocurrencies as well, 
i.e., if you lose money trading cryptocurrency, you can claim losses and save on the capital gains
taxes you file. You could consult a Melbourne accountant to know more about crypto taxes.
 CGT taxes
If you have been holding crypto assets for more than 12 months, you could apply for a CGT 
discount:
● 50% for resident individuals (including partners in partnerships)
● 33.33% for complying super funds and eligible life insurance companies
● 50% discount is removed or reduced on capital gains made after 8 May 2012 for foreign 
resident individuals
Buying with Cryptocurrency and airdrops
If you buy goods or services using Cryptocurrency, your transaction is not taxable. For instance, 
if you bought a gadget with Cryptocurrency, then taxes can be levied on the transaction. 
Airdrops are crypto rewards given to people promoting crypto products on various platforms. 
These rewards are crypto coins, most of the time that are liable to tax payment.
Filing taxes shouldn’t be as complicated and overwhelming a process as it seems. It is best to 
avail of bookkeeping services in Melbourne to maintain your peace of mind during tax season.
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you-need.html