Taxation & Superannuation
Tax is a major factor for cryptocurrency investors, traders, miners and many businesses. The current tax system is not built to handle cryptocurrency well which causes headaches for all.
As an asset with often dramatic price fluctuations, capital gains tax can apply when you sell, trade and convert it, or when it is used to obtain goods or services. Similarly, if you are ‘carrying on a business’ that involves transacting with cryptocurrency, trading stock rules can apply. Crypto holders, traders and transactors need to stay on top of their tax obligations and business structure, or risk large and complicated tax bills.
Self managed superfunds (SMSF’s) trustees and members need to be aware of their tax requirements when engaging in transactions involving cryptocurrency. Each SMSF is unique, and the consequences of holding crypto in an SMSF portfolio will change depending on the funds circumstances. SMSF’s also have regulatory considerations and requirements and must exercise caution when investing in cryptocurrency.