Author: RachATO(Community Support)Community Support 5 May 2021
Hi @205J,
Leaving Australia isn't a taxable event.
However, if your tax residency status changes from an Australian resident for tax purposes to a non-resident for tax purposes, then you are taken to have disposed of your capital gains tax (CGT) assets that aren't Australian taxable property for their market value at the time you ceased being a resident.
Cryptocurrency falls within the description of a CGT asset, so if your tax residency does change, then youd need to declare any capital gains/losses accordingly on the relevant financial year tax return to us. If this occurs, and in later years you actually sell (dispose) of the cryptocurrency, then you wouldn't need to report the disposal event to us.
It's also important to note that disposal (a CGT event) can occur through other actions, not just through selling. Disposal occurs when you:• sell or gift cryptocurrency• trade or exchange cryptocurrency (including the disposal of one cryptocurrency for another cryptocurrency)• convert cryptocurrency to fiat currency (a currency established by government regulation or law ), such as Australian dollars, or• use cryptocurrency to obtain goods or services.
If your cryptocurrency is being used as an investment, and you hold it for 12 months or more before disposing of it (while still an Australian tax resident), then you may be eligible for a capital gains tax (CGT) discount to reduce the capital gain you make through the disposal. I'll include a link to information about this, as well as the guide to capital gains tax that might be useful.
I'll also provide a link to a few forum posts too.
ATO website- Changing residency
ATO website- CGT assets and exemptions
ATO website- Transacting with cryptocurrency
ATO website- Guide to capital gains tax
Community forum- CGT shares after leaving Australia
Community forum- Cryptocurrency for tax return
RachATO
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