The ATO says that it will be writing to around 100,000 taxpayers with cryptocurrency assets explaining their tax obligations and urging them to review their previously lodged returns. It also expects 300,000 taxpayers will be prompted to report their cryptocurrency capital gains or losses as they lodge their 2021 tax return. Its analysis estimates that there are over 600,000 taxpayers that have invested in crypto-assets in recent years.
“Gains from cryptocurrency are similar to gains from other investments, such as shares. Generally, as an investor, if you buy, sell, swap for fiat currency, or exchange one cryptocurrency for another, it will be subject to capital gains tax and must be reported,” Assistant Commissioner Mr Tim Loh explained.