{"id":589,"date":"2018-04-18T06:20:48","date_gmt":"2018-04-17T20:20:48","guid":{"rendered":"https:\/\/mnygroup.wpengine.com\/?p=589"},"modified":"2025-02-01T17:27:54","modified_gmt":"2025-02-01T06:27:54","slug":"how-much-tax-should-you-pay-for-your-bitcoin","status":"publish","type":"post","link":"https:\/\/mnygroup.com.au\/en\/how-much-tax-should-you-pay-for-your-bitcoin\/","title":{"rendered":"How much tax should you pay for your Bitcoin?"},"content":{"rendered":"<p>For individuals, when buying items online for personal use or consumption, there is generally no income tax or GST implications.<\/p>\n<p><strong>Any capital gain or loss realised by disposing of bitcoin is generally disregarded (as a personal use asset), provided the value of the bitcoin is less than $10,000.<\/strong><\/p>\n<p>ATO advice is that certain records should be kept for\u00a0any bitcoin transactions, including:<\/p>\n<div class=\"text_exposed_show\">\n<ul>\n<li><em>the date of the transactions<\/em><\/li>\n<li><em>the amount in Australian dollars (which can be taken\u00a0from a reputable online exchange)<\/em><\/li>\n<li><em>what the transaction was for<\/em><\/li>\n<li><em>who the other party was (even if it\u2019s just their bitcoin\u00a0address).<\/em><\/li>\n<\/ul>\n<p>For more information:<\/p>\n<p>Crypto-currency in Australia had until recently been subject to what was labelled <strong>\u201cdouble taxation\u201d<\/strong>.\u00a0Legislation affective from <strong>July 1, 2017<\/strong> aligned the goods\u00a0and services tax (GST) treatment of digital currency\u00a0with money. Before this, anyone using cryptocurrency\u00a0as payment effectively paid GST twice \u2014 once when\u00a0buying the bitcoin and again on its use in exchange for\u00a0goods and services subject to GST.<\/p>\n<\/div>\n<div>\n<p><strong>The ATO deems bitcoin to be neither money nor foreign\u00a0currency, but also holds that it can be regarded as an\u00a0asset for capital gains tax (CGT) purposes.<\/strong><\/p>\n<p>As far as conducting transactions with bitcoin, the ATO\u00a0states that it views such transactions as akin to barter\u00a0arrangements.<\/p>\n<p>In conducting a business transaction therefore, the\u00a0same process would be followed as when, for example,\u00a0receiving a non-cash consideration under a barter\u00a0transaction, with the consideration recorded at fair\u00a0market value. This can be obtained from a reputable\u00a0bitcoin exchange.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":590,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1692],"tags":[],"class_list":["post-589","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-tax","masonry-post","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-20"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/posts\/589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/comments?post=589"}],"version-history":[{"count":0,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/posts\/589\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/media\/590"}],"wp:attachment":[{"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/media?parent=589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/categories?post=589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mnygroup.com.au\/en\/wp-json\/wp\/v2\/tags?post=589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}