How Does Tax Work on Crypto in Australia (2023 Edition)

In today’s video, I am back visiting the most popular topic I have ever had on my channel, tax on crypto. In particular, I will be going through the basics of how tax works on cryptocurrencies in Australia in 2023. I will go through capital gains tax on crypto, crypto income events (such as airdrops & staking) and other crypto related tax issues (such as NFTs).
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What is your number one crypto tax question?
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💼 How I Track My Crypto Investments for Tax Time
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📖 Chapters
0:00 Crypto Tax Basics
0:36 Switching Between Coins
4:05 Crypto Staking
6:42 Crypto Airdrops
8:15 NFTs
9:56 Personal Use Method
11:24 How to Track Your Crypto Taxes
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Ethan 'Rooshock' (Rucioch) is an Australian business owner in his late 20's. He is the owner and director of Rooshock Accounting, an accounting firm. He is also the creator of an NFT project, Rooshocks. In his spare time, he enjoys travelling, spending time with his family and watching countless hours of sport. On this channel you will find a range of different content, including personal finance, business advice, tax tips, crypto tax tips, NFT discussions and even Ethan analysing some popular TV show businesses from an accountant’s perspective.
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CONNECT WITH ME HERE:
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Disclaimer
Every effort has been made to ensure that the information in this video is accurate. The information in this video and on this YouTube channel is for entertainment and general information purposes only. It should not be taken as constituting professional advice. You should not rely on it as financial, legal or tax advice. There are always risks in any financial decision and all decisions should be made on an individual basis. You should conduct your own research and seek independent professional advice where needed. Some of the links in this video or video description may be affiliate links. Ethan Rucioch, Rooshock Enterprises Pty Ltd, Rooshocks NFT Pty Ltd or any other related party may receive a commission through these.
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#cryptotax #taxoncrypto #cryptotaxaustralia

[mattclarke]

Appreciate this. Has anyone legally challenged the ATO's jurisdiction over crypto? Considering that A: its not physically in Australia and/or B: Ausgov provides no services in exchange for these 'obligations'.

[peterinoz]

You’ve dispelled a number of myths, very well done! . Does the ATO have a view on people that mine crypto? I guess there is is no taxing event because they are accumulating and not disposing?

[nero]

Hey i have a question. If i hold my crypto and not sell or withdraw back to aud. Do i need to declare this to the ATO? If i do get a big unrealised gain how do i pay this if i havent sold yet?

[rupang]

Rather late question. If I say I bought a lump sum, convert it to Bitcoin and transfer the sum to my friend's wallet with the intention for our personal use (a digital artwork commission that's not a NFT). This occurred all within the day (in fact within 30min-1hr with single digit gains in total). Does it fall under personal use and thus Tax Free?

[thebarcaeva]

Very informative video, I am still a bit confused about the crypto to crypto swap. So in the example, swapping Bitcoin for Ethereum, the capital gain was 10K. So even though I did not get any money, do I still have to pay tax on that 10k. Or the 50k is the new base cost and I pay tax after I actually sell the Ethereum ?

[jincao]

If i bought an nft and it goes to zero, does that become an capital loss to offset my income? And if so what evidence do they need? I mean people could be just selling from their left hand to their right hand?

[popnas]

If i buy usdt its a fixed prices mostly and i send it to my brothers binance account ..would i pay taxe ? There is no income its just as a family support

[Wonka_Tonka]

Can you please add detaild about : If you add 1 btc and 100 ETH into a Liquidity pool and receive BTC-ETH_LP token is that a taxable event. . Also what happen with you send Eth to a 2nd layer eg move 1 eth to eth on polygon

[MrRobertjusher]

Do offshore exchanges share info with the ATO? Is my honesty the only way the ATO will know? Plus I've seen YouTube videos showing people trading coins for stable coins and putting that on crypto debit cards and just using that for expensives. Therefore not having money deposited into Australian bank accounts and the ATO is none the

[chonald]

If I were to swap BTC to a stable coin like Tether with the intent of keeping funds In my account would I fall under CGT?

[rickys]

Thanks Ethan, question please, if i buy 1 Btc at $30k (cost basis) and sell the very next day for $30k worth of Ethereum (approx. 15 eth). Do I need to pay any tax on this transaction please? Thank you and your response is much appreciated.

[Philb]

What about if i sell to the exchange cash account. Not to my bank acct?. Is that actually a sale and potentialy taxed?

[usaydomer]

Hey bro, bull run season again. I’m gonna throw a really specific outlandish scenario here but let’s do it. If I put in 10k into a random meme coin and it 1000x and now I have 10 mil, how am I taxed on that? Now what if I exchange that 10mil to like DAI for example which is just a stable coin and I hold that for a year will my tax be halved now? If you could run w the example and give me some numbers for that like net income, amount taxed etc. that’d be a big help man

[M.Mehdi.M-]

So it means if your capital gain is under 18k a year
It is not taxable?

[itsmePassport]

Can you tell me the tax on $100, 000 profit held over 12 months - how much tax do i owe.