Many of us hold a Crypto [link removed by moderator] Visa debit card, where cashback from personal-use transactions is paid in CRO. How is this cashback treated for Australian tax purposes?
I use Koinly, which currently treats the CRO as cashback (not income), with any capital gain or loss calculated based on the original market value at the time of receipt.
My specific question is whether the CRO received is considered assessable income at the time it is earned, or whether it is treated as the acquisition of a crypto asset, with tax only payable upon disposal under the capital gains tax rules.
I have reviewed the ATO guidance on crypto asset transactions:
However, the treatment of card cashback rewards paid in cryptocurrency is not clearly addressed other than these forums.
I’ve also found several relevant (and seemingly inconsistent) responses on the ATO Community Forums:
Jodie_ATO (ATO staff) stated that the CRO would not be regarded as income, and that its market value should instead be used as the cost base for CGT purposes on disposal.
https://community.ato.gov.au/s/question/a0J9s000000LqR7EAK/p00179275
2. https://community.ato.gov.au/s/question/a0J9s0000001INE/p00046930
Community support wrote: "No the $2 cash cash back would not be considered income as you used the crypto debit card to purchase a personal use asset. I am assuming it is a personal use asset as you advised you are not in business. Instead it would be considered a capital asset."
3. https://community.ato.gov.au/s/question/a0J9s000000LqR7EAK/p00179275
Blake (ATO staff) offered a different interpretation, stating:
“That means that when you get the CRO coin, its market value at that time is ordinary income to you. The market value also becomes the first element of the cost base of the crypto. It isn’t a CGT event because you haven’t disposed of the crypto in some way yet.”
Given these differing interpretations, I’m keen to understand how others are treating [Link removed by moderator] CRO cashback for tax purposes, and whether any clearer or more authoritative guidance exists.
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