Hi ATO Community,
We will be lodging our tax return in a few months and want to ensure I get everything 100% right. I hold a Temporary Graduate Visa (subclass 485) and meet all the criteria as a 'Temporary resident for tax purposes'.
I have two specific questions regarding cryptocurrency:
Question 1: Remittances and CGT Exemption I occasionally use a crypto exchange to send money to my family overseas. I deposit AUD, immediately convert it to crypto (like USDT), and withdraw/send it to my family's wallet overseas to save on international bank fees. Since cryptocurrency is not considered 'Taxable Australian Property' (TAP), does the CGT exemption under Section 768-915 apply to these specific transactions? I would like to confirm if any capital gain/loss from these disposals is completely disregarded, meaning I do not need to report them.
Question 2: 'Investor' vs 'Trader' (Carrying on a business) I understand the above exemption applies to Capital Gains, but not if the crypto activity is classified as ordinary income from 'carrying on a business' (trading). Is there a specific threshold or frequency of trades (e.g., a certain number of transactions per month) that the ATO uses to draw the line between a casual investor and a business trader? If I were to casually buy and sell crypto a few times a month for short-term profit, how does the ATO determine if those profits remain under the CGT umbrella (and thus exempt for me) versus becoming taxable ordinary income?
Thank you in advance for your guidance!
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