Private ruling: Cryptocurrency
Date of advice: 20 March 2019
Published: May 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 01 July 2017

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 considered them to be an investment. Your cryptocurrency assets are considered capital gains tax (CGT) assets. Any gains resulting from the disposal of cryptocurrency would be income as a capital gain and any losses sustained would be a capital loss.

Relevant facts and circumstances: You have previously acquired Cryptocurrency assets You completed transactions via BTC markets You completed transactions via Independent Reserve You have participated in cryptocurrency software projects You have made a gain

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