“The ATO has been paying close attention to crypto in recent years – and this year is no exception,” said Adam Saville-Brown, managing director of crypto tax reporting software Koinly.

Koinly’s head of tax education, Michelle Legge, explained that the ATO has revamped its crypto data matching program to collect data from 2014-2026 from “any crypto exchange legally operating in Australia”.

“Whether you use Binance, Coinbase, CoinSpot or another platform, the ATO will be able to collect your data,” Legge added.

The ATO expects to collect information including the names, addresses, emails and even social media accounts and IP addresses of 1.2 million crypto investors every year.

Saville-Brown said the majority of crypto investors in Australia knew their tax reporting responsibilities, but the program “will catch the small number of investors who fail to comply”.

Those who do not file correctly may at least receive a letter from the ATO with a reminder to report crypto transactions correctly.

Saville-Brown said it was unclear how the ATO would handle Bitcoin and Ether refunds from collapsed American crypto lender Celsius and that its users would be “confused by the potential tax implications of their refunds”.

Crypto deposits create a taxable event – ​​which could be a win for some, depending on how much they purchase.

“What’s not clear to investors is how to calculate their gains or losses and, more specifically, what figure to use as their cost basis,” Legge said.

He added that the ATO does not issue guidance on whether investors should use normal accounting methods or “the original cost basis purchase or value of assets at a particular time for certain assets”. - such as the day withdrawals are limited or the bankruptcy filing date.”

Saville-Brown said it was advisable to speak to an experienced accountant to calculate the tax liability as refunds could be a taxable gain or loss.

Australia this month acquired two spot Bitcoin exchange-traded funds (ETFs), one of which is the first to hold Bitcoin directly – and the other, also a first, to be launched on the country’s largest exchange.

But the old laws still apply to new products, and investors “will pay Capital Gains Tax when they sell their holdings and realize a gain from a Bitcoin ETF,” Legge said.

“While the introduction of Bitcoin ETFs on the Australian stock market is great news for wider adoption of cryptocurrency, it will still result in a tax bill,” he added.