This week's big news for Australian crypto investors: The Australian Taxation Office (ATO) has instructed crypto exchanges to share transaction details for up to 1.2 million accounts from 1 July 2023 to 30 June 2026.
Here’s what you need to know:
In a recent announcement, the ATO has asked crypto exchanges operating in Australia to provide trading and personal data on up to 1.2 million investors.
The data items include:
Client identification details: names, addresses, date of birth, phone numbers, social media accounts and email addresses.
Transaction details: bank account details, wallet addresses, transaction dates, transaction time, transaction type, deposits, withdrawals, transaction quantities and coin type.
The move comes in a bid to reduce the level of non-compliance in the crypto space.
The data will enable the ATO to audit investors’ tax obligations.
The Tax Office has used data-matching technology to collect data on investors dating back to 2015, but the old protocol expired on 30 June 2020. This new data-matching program shows the ATO is renewing its focus on crypto assets for the next few years.
So, what does it mean for you?
In an announcement on its website, the ATO states: “The data will be acquired and matched to ATO systems to identify and treat clients who failed to report a disposal of crypto assets in their income tax return.”
So, it’s safe to say that if you haven’t started declaring your crypto activity when completing your tax return, now is the time to start.
What should you do?
Fortunately, figuring out your obligations doesn’t have to be daunting.
For those wanting to DIY, myself and the Cadena Legal team use and recommend Summ (formerly Crypto Tax Calculator). With Summ, whether you’ve traded only on centralised exchanges or you’ve fallen down the rabbit hole of on-chain activity, generating a crypto tax report is straightforward.
Even if you have several years’ worth of crypto taxes to catch up on, Summ’s plans cover all tax years - meaning even if you’ve never reported before, your subscription will cover tax reports for all previous tax years.
If you need additional help figuring out your obligations, connect with a specialist crypto tax accounting professional.
Every year, tax offices the world over increase their focus on crypto. Don’t be caught with a hefty tax penalty when the tax man comes knocking. It’s not a matter of if, but when.
The information provided on this website is general in nature and is not tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek professional advice. Summ (formerly Crypto Tax Calculator) disclaims all and any guarantees, undertakings and warranties, expressed or implied, and is not liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or Consequential Loss or damage) arising out of, or in connection with, any use or reliance on the information or advice in this website. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information in this website is no substitute for specialist advice.
FAQ
This article was prepared by Tax Specialist and Director Harrison Dell from Cadena Legal. If you have questions or would like to book an appointment with Harrison, please visit Cadena Legal.
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