Advice under development: Income tax: capital gains tax consequences of using a smart contract to wrap and unwrap crypto assets
Issue: Cryptocurrency
Category: Capital gains tax
Type of advice: Draft Taxation Determination
Status: Under development
Expected completion: August 2026
Purpose: This draft Determination will consider how the CGT provisions apply when a crypto asset is sent to a wrapping contract to be wrapped or unwrapped. Wrapping contracts are a type of smart contract used to exchange one crypto asset for its wrapped equivalent, which is often done to enable compatibility with certain protocols or platforms. | This draft Determination does not apply to all forms of wrapping facilitated by smart contracts. It only applies to the specific wrapping arrangement set out in this draft Determination.