In Australia, the tax treatment of cryptocurrency depends on how it is used. The Australian Taxation Office (ATO) has issued guidance on the tax treatment of cryptocurrency, which states that:
Cryptocurrency used as a personal use asset: If you acquire cryptocurrency as a personal use asset and later dispose of it for a capital gain or loss, the capital gain or loss is disregarded as it is considered to be a personal use asset.
Cryptocurrency used as an investment: If you acquire cryptocurrency as an investment and later dispose of it for a capital gain, you will be required to pay capital gains tax on the gain.
Cryptocurrency used in a business: If you use cryptocurrency in your business, any profits or losses you make on the sale of the cryptocurrency will be included in your assessable income or allowable deductions.
It is important to keep records of all your cryptocurrency transactions, as you may be required to provide these to the ATO for tax purposes. If you are unsure about the tax treatment of your cryptocurrency transactions, you should seek professional tax advice.