Say if I have an investment on a crypto platform that generates returns based on company profits and on the same platform I also have the option to earn commissions based on the account activity of my referrals, will my earnings from such referrals simply be included as investment income and will not be regarded as carrying on a business?
Hi @tx_mt24
That depends. It's likely ordinary income if you're not running a business.
Are you paid in crypto itself or cash, how does it work?
Hi @tx_mt24
That depends. It's likely ordinary income if you're not running a business.
Are you paid in crypto itself or cash, how does it work?
Thank you for the response. It works like this. I would buy crypto on a cryptocurrency exchange, transfer it to the platform and provide liquidity to a liquidity pool for a fixed term, with my original investment returned to me at the term's end. I could then withdraw it back to the cryptocurrency exchange or leave it on the platform and use it to provide liquidity again. The returns would be paid in crypto, which can be used to provide more liquidity (if it's enough for the minimum investment) and I'd earn commissions (in the exact same cryptocurrency as liquidity provisions) on any referrals I have, who are also liquidity providers. Again, the commissions earned on referrals can be used to provide liquidity if they reach the minimum investment amount. I came across a very similar post but I am not sure of the accuracy of it, hence my query:
https://community.ato.gov.au/s/question/a0J9s0000001IKf/p00046771
So would the commissions on referrals be ordinary income that would be included with the investment income, as detailed above?
15 Apr 2026 · 8 min read time
4 Dec 2023 · 9 min read time
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