Private ruling: Cryptocurrency
Date of advice: 8 October 2024
Published: 18 November 2024
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is your use of cryptocurrency in the 2024 income year, considered a personal use asset? | A1: Yes.

Relevant facts and circumstances: You are an Australian resident for income tax purposes. You hold a Kraken account. Person A used your Kraken account to purchase product from overseas. Person A placed Australian dollars into the Kraken account to purchase bitcoin, and immediately used the bitcoin to pay someone overseas for personal goods. The Kraken account has not been used to trade or invest in cryptocurrency. You have not earned any interest income in the Kraken account. You provided a Statement of Account, covering the period XX XX 20XX to XX XX 20XX. The transactions that cover the 20XX income year, show several deposits with concurrent/instant withdrawals of the bitcoin.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 6-10 | Income Tax Assessment Act 1997 subsection 108-5(1)