The central premise to be “outside of the central banking monetary system” and the “way of the future”. If you own or are thinking to own cryptocurrencies, you should not be confused with that those that disagree with Bitcoin being money and those people not understanding it. They do, especially the Australian Taxation Office (ATO)
Buying and selling Bitcoin or any other cryptocurrency may attract a capital gain event which is reportable on your tax return.
A capital gain is the difference between the purchase and sale price and a capital gain event with cryptocurrencies can be the following:
- sell or gift cryptocurrency;
- trade or exchange cryptocurrency (including the exchange of different currencies)
- convert cryptocurrency to fiat currency such as AUD
- use cryptocurrency to obtain goods or services (source: NTAA 2018)
However, there are some provisions which may exempt a capital gain event.
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