Continued progress on the tax treatment of digital assets and transactions in Australia

By Anthony Bradica, Jacqueline McGrath and Adam Dimac

The Board of Taxation has released a Consultation Guide (August 2022) as part of its appointment in December 2021 to Review the Tax Treatment of Digital Assets and Transactions in Australia (Review).

The Consultation Guide is seeking responses to 15 questions falling under the following themes:

  1. the current tax treatment of crypto-assets;
  2. awareness of the tax treatment of crypto-assets;
  3. characteristics and features of crypto-assets;
  4. international tax treatment of crypto-assets and experience;
  5. changes to Australia’s taxation laws for crypto-assets; and
  6. administration of Australia’s taxation laws for crypto assets.

Any written submissions are due by 30 September 2022. The Board of Taxation (BoT) is also running a number of consultations sessions throughout September to gather feedback to the specific questions posed in the Consultation Guide and also more broadly to gather insight about other issues relevant to the current Australian tax treatment of crypto-assets. It is expected that BoT will issue its final report by December 2022.

The Review is part of a much broader focus by the Australian Government (and international revenue regulators) on the many and complex tax issues arising from digital assets. While the Australian Taxation Office has frequently released guidance on the treatment of digital assets since 2014, the Review by BoT is a welcome step to ensure that the tax policy and administration best reflects the current state of the technology and its challenges.

Hall & Wilcox is working with a number of parties who are considering making a submission. Let us know if you have a view on any particular issue that should be included in a submission.

More information about the Review is available on the BoT’s website.

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