The Australian Taxation Office (ATO) has identified four main areas on which it will concentrate its efforts this year. Record-keeping, work-related costs, and rental property income and deductions are among them. The list of declared goals is completed by ensuring enhanced examination of capital gains reporting from property, shares, and crypto assets. Australians are being warned by the tax office that if they sell crypto assets this financial year, including non-fungible tokens (NFTs), they must calculate any capital gain or loss and report it on their tax returns. Assistant Commissioner Tim Loh remarked:
“Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year.”
According to the high-ranking official, taxpayers should reconsider their claims and follow the regulations. Loh noted:
“The ATO is targeting trouble areas where we observe people making mistakes.”
The ATO recognises that many Australian citizens are purchasing, selling, or transferring digital assets; therefore, it’s critical that individuals understand their tax duties. He also cautioned taxpayers that bitcoin losses can not be deducted from their incomes and earnings.
After a recent market research firm, Roy Morgan, highlighted that more than a million Australians, or 5% of those aged 18 and older, possess one or more cryptocurrencies. The ATO decided to focus on the reporting and taxation of gains from crypto investments.