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viper33(Initiate)Initiate
9 Nov 2022

Hi all, I had a question that I can't seem to find exact answers on the ATO's website.


I've already reviewed the trader vs investor articles and understand that my activities under an ABN are business-like and my crypto futures trading will be classed as operating as a business.


However, what I'm confused about is the treatment of any potential crypto assets within the business. I intend to buy a lump of a stablecoin (USDT for example) and then use that stablecoin to make futures trades.


I understand that the futures trades will be treated as trading stock/assessable income and not subject to CGT. However, is the USDT that is constantly being bought/sold (as a result of the opening and closing of futures trades) subject to capital gains or is it also assessed as income/trading stock?


As the ATO website regarding crypto assets used in business suggests that the USDT will also be considered trading stock, whereas some of the posts in the ATO community suggest that the USDT will be subject to Capital Gains Tax.

2,870 views
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2,870 views
5 replies

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Most helpful reply

CaroATO(Community Support)Community Support
6 Dec 2023

Hi @xxdbxx,


When we look at calculating the cost base of an asset for CGT purposes the second element includes incidental costs of acquiring the CGT asset or that relate to the CGT even such as fees. This'll help reduce your capital gain.

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AriATO(Community Support)Community Support
14 Nov 2022

Hi @viper33


We'll check this out and get back to you

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ATO Certified Response
AriATO(Community Support)Community Support
ATO Certified Response17 Nov 2022

Hi @viper33


Thanks for waiting.


If you have registered an ABN and are carrying on a business of trading in crypto assets and their derivatives like options and futures, gains and losses will generally be subject to the trading stock rules. For more information, go to Crypto assets used in business.


Where the USDT are used in the ordinary course of carrying on a business . (including businesses that are not 'crypto asset businesses'), in which case the crypto assets are also trading stock. Where the USDT are kept as investments, the crypto assets are subject to capital gains tax (CGT) when a CGT event happens, and you need to account for them in the business's net capital gains or capital losses For more information, go to Crypto asset investments .

Liked by viper33
xxdbxx(Initiate)Initiate
29 Nov 2023

2 more questions, when I buy and sell a USDT future, I get charged a fee. Would this fee be also considered an expense? E.g I buy a future worth $100, I sell it for $120. The exchange charge me $2.5 in fees for each transaction. Do I only have to pay tax on $20-5?


And also, if I lose $20 in another transaction, would that also be a write off?

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Cryptocurrency Futures Trading as a business | ATO Community