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Australian Taxation Office focuses on crypto-asset income

The Australian Taxation Office (ATO) has announced four key areas where they will focus their attention this year. These include bookkeeping, work-related expenses, income, and rental deductions. Ensuring greater oversight of the reporting of capital gains from assets, stocks, and crypto assets completes the list of stated priorities.

The ATO is targeting problem areas where we see people making mistakes,” noted Assistant Commissioner Tim Loh. The senior official stressed that taxpayers should rethink their requirements and comply with current rules.

Tax authorities are warning Australians that if they deal with crypto assets this financial year, including non-fungible tokens (NFTs), they will need to establish all returns or capital loss and record it on their tax return. Loh commented:

Cryptocurrencies are a popular asset class and we expect to see more capital gains or capital losses reported in tax returns this year.

The Assistant Commissioner commented that the ATO is aware that many Australian residents are buying, selling or exchanging digital assets, so it is important for everyone to understand what this means for tax obligations. their. He also reminded taxpayers that they cannot cover their crypto losses against their salaries and wages.

The agency’s decision to focus on reporting and taxing income from crypto investments comes after a recent study revealed that more than a million Australians, or 5% of those a person 18 years of age or older who owns one or more cryptocurrencies.