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The Australian Tax Office (ATO) is intensifying its scrutiny on cryptocurrency investors who realized gains before the financial year ended on June 30, as taxpayers start filing their returns.
Adam Saville-Brown, general manager of crypto tax reporting software Koinly, told Cointelegraph, “The ATO has maintained a keen focus on crypto in recent years, and this year is no different.”
The ATO has updated its crypto data matching program to gather data from 2014 to 2026 from any legally operating crypto exchange in Australia, explained Koinly’s tax education head Michelle Legge. “Whether you’re using Binance, Coinbase, CoinSpot, or another exchange, the ATO will be able to collect your data,” she added.
The program is expected to collect information, including names, addresses, emails, social media accounts, and IP addresses of 1.2 million crypto investors annually. Saville-Brown noted that while most Australian crypto investors are aware of their tax obligations, the program is likely to catch the few who fail to comply.
Non-compliant investors could receive a reminder letter from the ATO to properly report their crypto transactions.
Celsius Refunds Could Cause Confusion
The ATO’s guidance on how to handle Bitcoin and Ether repayments from the bankrupt American crypto lender Celsius is unclear, potentially confusing users about the tax implications of their refunds, Saville-Brown said. Crypto deposits can create a taxable event, resulting in a gain for some investors depending on their purchase price.
“What remains unclear is how investors should calculate their gain or loss and what figure to use as their cost basis,” Legge said. The ATO has not specified whether investors should use normal accounting methods or alternatives, such as the original purchase cost of the assets or their value at a specific point in time, like the day withdrawals were limited or the bankruptcy filing date.
Saville-Brown advised consulting an experienced accountant to determine tax liability, as the refunds could be either taxable gains or losses.
Bitcoin ETFs Still Subject to Tax
Australia recently introduced two spot Bitcoin exchange-traded funds (ETFs), with one holding Bitcoin directly for the first time and another launching on the country’s largest stock exchange. However, existing tax laws still apply to these new products. Investors will incur Capital Gains Tax whenever they sell holdings from a Bitcoin ETF and realize a gain, Legge said.
“While the introduction of Bitcoin ETFs to the Australian stock market is great news for the broader adoption of cryptocurrency, it will still result in a tax bill,” she added.
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