- The release of the ‘Board of Taxation’s Review of the tax treatment of digital assets and transactions in Australia’ last week could signal more active enforcement of crypto tax compliance, according to Shane Brunette, CEO of Crypto Tax Calculator.
- The Government’s review didn’t propose any new crypto-specific tax legislation, instead it reaffirmed that crypto is covered by existing tax laws.
- In response to the review, the ATO said it will form an industry working group to create a package of publicly available crypto tax guidance.
The Australian Government’s recent move to rule out crypto-specific tax laws paves the way for the Australian Tax Office (ATO) to more actively enforce crypto tax obligations, according to Shane Brunette, the CEO of Crypto Tax Calculator.
His comments to Crypto News Australia come in the wake of the Australian Government’s release of the ‘Board of Taxation’s Review of the tax treatment of digital assets and transactions in Australia’ on March 21.
This latest update reaffirms what we’ve known for a while—crypto continues to be taxed under existing laws, and the ATO expects compliance to be taken seriously.
Shane Brunette, Crypto Tax Calculator CEOBrunette said that the review makes explicit that crypto is captured under existing tax law, and signalled the ATO would take the lead. He warned crypto investors to make sure their tax affairs are in order because the ATO’s compliance expectations regarding Aussie crypto activity would likely increase:
For crypto investors, the practical takeaway is simple: don’t confuse the absence of new legislation with a lack of regulatory momentum. If anything, expectations are increasing.
Shane Brunette, CEO of Crypto Tax CalculatorThe tax review was released concurrently with the Government’s plan to reform regulation of Australia’s digital assets industry, which would see crypto exchanges and custody providers required to hold Australian Financial Services Licenses (AFSL) and be subject to enhanced obligations around protecting investors’ assets.
Related: Labor Outlines Regulatory Plan to Fuel Blockchain Innovation in Australia if Re-elected
Crypto Tax Review Shows Government Looking to Engage
In a joint statement from Treasurer Jim Chalmers, Assistant Treasurer Stephen Jones and Special Envoy for Cyber Security and Digital Resilience Andrew Charlton emailed to Crypto News Australia last week, the government said the taxation review found that existing laws were adequate.
The taxation of digital assets and transactions can already be accommodated under existing tax law and any uncertainty can be effectively managed by the Australian Taxation Office (ATO) providing additional guidance materials.
Australian government statement
The Government said the ATO had agreed to form a “bespoke and time-limited crypto working group” to collaborate with the digital assets industry and tax professionals to create a publicly available package of crypto tax advice.
Related: Australia Won’t Follow Trump’s Lead On Crypto Reserve, Finance Minister Confirms
Brunette said that while no detail has emerged from the ATO yet, the creation of the industry working group indicates a renewed focus on industry engagement and practical guidance:
While there hasn’t been new public guidance released yet, we see this as part of a longer-term shift. The Government is signalling that it wants to give the ATO room to engage more closely with industry and provide clarity through practice, rather than rewriting the rules all at once.
Shane Brunette, CEO of Crypto Tax CalculatorCredit: Source link
