Private ruling: CGT - cryptocurrency
Date of advice: 4 December 2025
Published: 27 January 2026
Ruling period: 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Does a CGT event under section 104-5 of the Income tax Assessment Act 1997 (ITAA 1997) happen at the time the fraudulent transactions took place? | A1: Yes. | Q2: Will the first element of your cryptocurrency cost base be the money paid at the time of repurchase? | A2: Yes.

Relevant facts and circumstances: On XX XXX 20XX many of your personal accounts were hacked by a well-known individual. On the same date the hacker had gained access to your crypto wallet on Coinspot exchange. The perpetrator completed several sell events with your cryptocurrency investments. You immediately contacted Coinspot to lock your account before the perpetrator could withdraw actual cash. You also reported the matter to Organisation A on XX XXX 20XX and XX XXX 20XX to Organisation B. Once your account was unlocked you re-purchased XX% of same cryptocurrency that was sold by the perpetrator.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-5 | Income tax Assessment Act 1997 section 124-70

Reasons for decision: Detailed Reasoning - Detailed reasoning: Yes. Your cryptocurrencies were sold without your consent; therefore, the cryptocurrencies were lost to you, which is a situation described in section 104-20 of the ITAA 1997 as CGT event C1. Note. CGT event A1 also occurred as it was a disposal of a CGT asset, however subsection 102-25(1) of the ITAA 1997 states that if the situation can be defined by more than one CGT event, you should use the event which is most specific to your circumstances, which is CGT event C1 in your case. | Detailed Reasoning - Question 2: Will the first element of my cryptocurrency cost base be the money paid at the time of repurchase? | Detailed Reasoning - Detailed reasoning: Yes. When a CGT asset is fraudulently lost and later repurchased, the treatment of the cost base and acquisition date depends on whether CGT rollover relief provisions are met under section 124-70 of the ITAA 1997? | Detailed Reasoning - Conditions for Rollover Relief: Under section 124-70 of the ITAA 1997, roll-over applies if: 1. The original asset you own, It or part of it, is lost or destroyed 2. You must receive money or another *CGT asset (except a *car, motorcycle or similar vehicle), or both a) as compensation for the event happening: or b) under an insurance policy against the risk of loss or destruction of the original asset. If roll-over applies: • The capital gain or loss from the original asset is disregarded. • The cost base of the replacement asset is based on the original asset's cost base, adjusted for any compensation received. • The acquisition date of the replacement asset is treated as the same as the original asset's acquisition date. If roll-over does not apply: • The replacement asset is treated as a new acquisition • Cost base is the repurchase price plus incidental costs • The acquisition date will be the date of repurchase You did not receive compensation for your loss of cryptocurrencies; therefore, roll-over relief will not apply and the first element of your cryptocurrency cost base will be the date of repurchase as per subsection 110-25(2) of the ITAA 1997.