Record Keeping for Cryptocurrency

You need to keep the following records in relation to your cryptocurrency transactions including:

  • the date of the transactions,
  • the value of the cryptocurrency in Australian dollars at the time of the transaction (which can be taken from a reputable online exchange),
  • what the transaction was for and who the other party was (even if it’s just their cryptocurrency address).

The sorts of records you should keep include:

  • receipts of purchase or transfer of cryptocurrency,
  • exchange records (you will need to download an annual statement of transactions for your accountant),
  • records of agent, accountant and legal costs,
  • digital wallet records and keys,
  • software costs related to managing your tax affairs.

For further information click below:—specifically-bitcoin/

Tax Implications for Cryptocurrency

You will also need to be aware of what will trigger a CGT event on the disposal of cryptocurrency including:

  • sell or gift cryptocurrency,
  • trade or exchange cryptocurrency (including the disposal of one cryptocurrency for another cryptocurrency),
  • convert cryptocurrency to fiat currency (a currency established by government regulation or law ), such as Australian dollars, or,
  • use cryptocurrency to obtain goods or services.

For further information click below:—specifically-bitcoin/?page=2

Can you hold Cryptocurrency in your SMSFYes, under specific circumstances. It must:

  • be allowed under the fund’s trust deed,
  • be in accordance with the fund’s investment strategy,
  • comply with SISA and SISR regulatory requirements concerning investment restrictions.

For further information click below:

MMA Support

Please contact your accountant on 02 6672 4044 for further Cryptocurrency advice.

Updated: 15th December 2021

(BBC Picture, 2021)