The ATO's review of Crypo Tax Treatment

On 8 December 2021, the former Treasurer announced, as part of a broader response to a review of Australia’s payments system and the regulation of digital assets, that the Government would task the Board with undertaking a review into the appropriate policy framework for the taxation of digital transactions and assets (also known as crypto assets) in Australia.

With reference to Australia’s strong competitive position as an early adopter of digital transactions and assets relative to other jurisdictions, and without increasing the overall tax burden, the Board is asked to:

  • Consider the current Australian taxation treatment of digital assets and transactions and emerging tax policy issues; • Consider the awareness of the taxation treatment by both retail and wholesale investors and those transacting in digital assets as part of their business;
  • Consider the characteristics and features of digital assets and transactions in the market, including the rapid evolution of technology supporting the broader digital asset ecosystem;
  • Analyse the taxation of digital assets and transactions in comparative jurisdictions and consider how international experience may inform the taxation of digital assets and transactions in Australia; and
  • Consider whether or not any changes to Australia’s taxation laws and/or their administration are warranted in the context of digital assets and transactions, both for retail and wholesale investors. Consultation Guide | 5 In carrying out the Terms of Reference, the Board is asked to consult with taxpayers, tax representative bodies, industry stakeholders and academics.

The board has been asked to report back to the Government by the end of December 2022.

More information is available on the Board of Taxation website.

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