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Re: Temporary Resident (482)_Is Bitcoin CGT Applicable

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Newbie

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Hello,

 

The CGT as it relates to temporary residents is unclear to me - Could you please advise whether cryptocurrency (i.e. Bitcoin) is subject to the 15% CGT for temporary residents? The section on your website for temporary residents states that CGT only applies to real property in Australia, which in my opinion does not relate to Bitcoin. The Bitcoin is not for use in a business in Australia.

 

'....you're subject to capital gains tax (CGT) if a CGT event happens to a CGT asset that is taxable Australian property. For example, real property in Australia or a CGT asset you use in a business in Australia.'

 

Thanks,

Gerard

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ATO Certified

Community Manager

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Hi @GerardN 

 

You're right, there are special rules for non-residents when it comes to considering how CGT applies. For a resident taxpayer, any transaction affecting a CGT asset, including Bitcoin, would need to be considered in working out their taxable income for the year. A non-resident would only need to consider assets with a specific connection to Australia and, as you say, Bitcoin is not one of those assets. It might however, be relevant to determining your tax obligations in your home jurisdiction.

 

Holding Bitcoin with the view to making a profit may result in assesable income in Australia even if you're not using it in a business. The answer really depends on a whole lot of factors. You could consider asking for a private ruling on your specific circumstances. You can apply for a private ruling free of charge.

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Community Manager

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Hi @GerardN 

 

Are you in Australia on a temporary resident visa? You may be eligible for tax concessions. We'll do some research and get back to you.

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ATO Certified

Community Manager

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Hi @GerardN 

 

You're right, there are special rules for non-residents when it comes to considering how CGT applies. For a resident taxpayer, any transaction affecting a CGT asset, including Bitcoin, would need to be considered in working out their taxable income for the year. A non-resident would only need to consider assets with a specific connection to Australia and, as you say, Bitcoin is not one of those assets. It might however, be relevant to determining your tax obligations in your home jurisdiction.

 

Holding Bitcoin with the view to making a profit may result in assesable income in Australia even if you're not using it in a business. The answer really depends on a whole lot of factors. You could consider asking for a private ruling on your specific circumstances. You can apply for a private ruling free of charge.

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Newbie

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Hi BreeH,

 

Thanks for your feedback, which seems aligned to my understanding. I will apply for the private ruling as there are many more factors which make my case unique. Thanks.

 

GerardN