The Australian Tax Office (ATO) is intensifying its scrutiny of cryptocurrency gains ahead of the country’s fiscal year end on June 30, as taxpayers prepare to file their returns by the month’s end.
“ATO has maintained a vigilant focus on crypto in recent years, and this year is no different,” said Adam Saville-Brown, General Manager of crypto tax reporting software Koinly, in an interview with Cointelegraph.
According to Michelle Legge, Head of Tax Education at Koinly, ATO has enhanced its crypto data matching program to cover data from 2014 to 2026, sourced from “any legally operating crypto exchange in Australia.”
“Whether users are on Binance, Coinbase, CoinSpot, or other platforms, ATO will gather their data,” she added.
The program aims to collect information such as names, addresses, emails, social media accounts, and IP addresses of approximately 1.2 million crypto investors annually.
Saville-Brown noted that most Australian crypto investors are aware of their tax obligations, but the program is expected to identify those who have not complied.
Celsius refunds might cause confusion
The Australian Tax Office (ATO) hasn’t provided clear guidance on handling Bitcoin (BTC) and Ether (ETH) repayments from bankrupt American crypto lender Celsius. This lack of clarity may leave users confused about the potential tax implications of their refunds, according to Saville-Brown.
Cryptocurrency deposits trigger taxable events, potentially resulting in gains depending on the purchase price. Legge noted that investors remain uncertain about calculating their gain or loss, especially regarding which cost basis figure to use. The ATO has not clarified whether to apply standard accounting methods, original purchase cost basis, or the asset’s value at specific dates like the withdrawal limits or bankruptcy filing.
Saville-Brown recommended consulting with a knowledgeable accountant to determine the tax implications, given that the refunds could result in either taxable gains or losses.
Bitcoin ETFs still remain subject to tax obligations.
Australia welcomed two new spot Bitcoin exchange-traded funds (ETFs) this month, marking significant firsts in the country’s financial landscape. One of these ETFs directly holds Bitcoin, a pioneering move, while the other launched on Australia’s largest stock exchange, also a first.
However, despite these advancements, investors will still be subject to existing tax laws. Michelle Legge emphasized that investors in these new products will incur Capital Gains Tax when they sell their holdings from a Bitcoin ETF and realize a profit.
“While the introduction of Bitcoin ETFs on the Australian stock market is a positive step for cryptocurrency adoption, investors should be aware that it will come with tax implications,” Legge explained.
