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Al_xhx(Newbie)Newbie
11 Mar 2024

Hi, I remember there was an official article about mining crypto as a hobby, but can no longer find it.


I mined some ETH back in 2021 and 2022 and am considering selling them soon.


I have done some research within the ATO community and some responses stated that the cost basis for mining as a hobby is going to be 0. Some have argued that it shouldn't be 0, such as this post https://community.ato.gov.au/s/question/a0J9s0000001IMf/p00046895


I would like to find out the latest guideline from the ATO, zero dollar cost basic doesn't seem to be reasonable at all.


Thanks.



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4 replies
235 views
4 replies

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Most helpful reply

KylieATO(Community Support)Community Support
28 Mar 2024

Hi @AI_xhx,


You can hobby mine crypto either individually or as part of a pool, provideing computing power, to a pool. If you hobby mine individually, not part of a pool, your cost base of the mined crypto assets comprises of expenditure that falls under 5 cost base elements. For more information, on the 5 elements, go to Cost base of assets . If none of your expenditure is included in one of the cost base elements, then your cost base is $Nil. If you want advice about specific items of expenditure you have incurred, then write in for some tailored technial assistance.

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AriATO(Community Support)Community Support
15 Mar 2024

Hi @Al_xhx


That article's now retired but here's the current info we have about crypto and your taxes. If you head to our website, you'll find out about crypto asset transactions and how income tax and GST applies to crypto mining.


The zero-cost base can apply to initial allocation drops where you haven't paid anything.


I'll check with our technical team to see if we can confirm the cost base of your assets. In the meantime have a look at the links above.

Liked by Al_xhx
Al_xhx(Newbie)Newbie
15 Mar 2024

Thanks for your response, I have gone through those articles, and none of them have mentioned mining as non-business.

I understand that I can't claim the cost of the use of the equipment as it's not run as a business, I would like to know if the electricity bill can be part of the cost base, considering it needs the electricity to get the reward for the crypto, which most of other has been argued about.


I'm looking forward to the further information, thanks again.

Most helpful reply

KylieATO(Community Support)Community Support
28 Mar 2024

Hi @AI_xhx,


You can hobby mine crypto either individually or as part of a pool, provideing computing power, to a pool. If you hobby mine individually, not part of a pool, your cost base of the mined crypto assets comprises of expenditure that falls under 5 cost base elements. For more information, on the 5 elements, go to Cost base of assets . If none of your expenditure is included in one of the cost base elements, then your cost base is $Nil. If you want advice about specific items of expenditure you have incurred, then write in for some tailored technial assistance.

AriATO(Community Support)Community Support
2 Apr 2024

Hi @AI_xhx


We've heard from our tech team.


You can hobby mine crypto either individually or as part, you provide computing power, of a pool. If you hobby mine individually, not part of a pool, your cost base of the mined crypto assets comprises of expenditure that falls under 5 cost base elements.


For more info, on the 5 elements, go to Cost base of assets. If none of your expenditure is included in one of the cost base elements, then your cost base is $Nil. 


If you want advice about specific items of expenditure you have incurred, then write in for some private advice.

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