Private ruling: Cryptocurrency
Date of advice: 3 June 2020
Published: July 2020
Ruling period: Year ended 30 June 2016 | Year ended 30 June 2017 | Year ended 30 June 2018
Date scheme commenced: 01 July 2015

Ruling: Q1: Is the gain made on the sale of cryptocurrency to be treated on capital account? | A1: Yes. The Commissioner has reviewed your cryptocurrency activities and they are an investment. Your cryptocurrency assets are capital gains tax (CGT) assets. Any gains resulting from the disposal of cryptocurrency would be taxed as a capital gain and any losses sustained would be a capital loss.

Relevant facts and circumstances: You have acquired Cryptocurrency assets with the intention of making long term gains You completed a low number of transactions during the first income tax year You made a gain during the first income tax year You completed a low number of disposal transactions during the second income tax year You made a gain during the second income tax year You completed a low number of disposal transactions during the third income tax year You made a gain during the third income tax year You made a number of arbitrage trades in the third income tax year

Relevant legislative provisions: Income Tax Assessment Act 1997 , Section 6-5 | Income Tax Assessment Act 1997 , Section 8-1 | Income Tax Assessment Act 1997 , Section 102-5 | Income Tax Assessment Act 1997 , Section 102-10 | Income Tax Assessment Act 1997 , Section 995-1 | Income Tax Assessment Act 1997 , Section 35-10 | Income Tax Assessment Act 1997 , Section 35-30