The regulatory authority, the Australian Taxation Office (ATO) has added crypto capital gains to the list of four key areas of focus in 2022.
The latest announcement makes it mandatory for digital assets investors to calculate a capital gain or capital loss and record it in their tax returns.
As per the ATO, the percentage of capital gains taxation differs between income brackets and duration of ownership. Also, for assets held longer than 12 months, the rate is reduced.
The regulatory authority already slammed warnings to crypto and non-fungible token (NFT) investors as these digital assets will be scrutinized for correct tax reporting.
It seems like Australian regulators want to curb speculation of digital assets in the country. Recently, the Australian Prudential Regulation Authority (APRA) has released a policy statement for implementing regulations on financial groups involved in crypto-related activities and has set a tentative goal 2025 for the implementation.
“Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year. Remember you can’t offset your crypto losses against your salary and wages,” ATO assistant commissioner Tim Loh said.
“Through our data collection processes, we know that many Aussies are buying, selling or exchanging digital coins and assets so it’s important people understand what this means for their tax obligations.”
Along with this, record-keeping, work-related expenses, and rental property income and deductions were also into the four priorities.
