CRYPTOCURRENCY traders using online investments to dodge the Australian Taxation Office will face a rude shock come June 30, an expert has warned.
Miriam Clappis, founder of Adelaide based Fab Tax Accountants, said she has a lot of clients who have been investing in crypto currencies including Bitcoin.
She said similar tax rules that apply to property and shares are also supposed to apply to crypto currencies, and depending on the person’s intention, must declared.
“Not many people are aware that they have to pay tax on it, some thought it was gambling so they don’t have to pay tax on it,” she said. “They think because the ATO doesn’t know about it now, they will never find out about it.
“There needs to be a lot more education about it.”
ATO rulings about crypto-currencies from 2014 have been dubbed out of date by experts, as the ATO has engaged in “some external consultation” to help it track cryptocurrency transactions and tax evasion.
However, those already caught out by cryptocurrency trading include stay-at-home mums, who have to pay tax on the profit that they’ve made despite not cashing it out.
“This lady has written in to the ATO, she’s a stay at home mum, she started off with $10,000, she’s now up to $80,000 it’s all in crypto,” Ms Clappis said.
“She’s had to cancel her family tax benefit, she hasn’t received any cash back because she’s kept it all in crypto and she’s going to have a tax bill.”