This post will guide you through crypto-related tax issues that may benefit you at tax time. While it’s based on the latest information from the ATO, the space keeps evolving, and the information may be subject to change. We do not offer tax or financial advice, and the information presented is general in nature. You can get individual tax advice from a licenced tax expert and check the Australian Tax Office and Business.gov websites for more information.
You can obtain the crypto tax information from the ATO here.
What is CoinSpot?
CoinSpot is an Australian-based cryptocurrency exchange that opened its doors in 2013. Founded by the cyber-security specialist Russell Wilson, CoinSpot established itself as one of the first crypto exchanges that provide a vast array of digital assets in Australia.
CoinSpot takes the lead among other Australia-based crypto exchanges thanks to more than 360+ coins supported, flexible deposit methods and competitive trading fees for instant, OTC and SMSF investors. The exchange platform also has 24/7 customer support, an in-platform NFT marketplace, staking services and many high-level security measures to bring the best experience for their customers.
- Web Address: www.coinspot.com.au
- Main location: Melbourne, Australia
- Mobile app: available on both App Store and Google Play Store
- Deposit Methods: Bank transfer, POLi, PayID, OSKO, BPAY, Cryptocurrency, Cash
- Trading Fees: Market order: 0.1%, OTC: 0.1%, Instant buy: 1%
- Deposit Fees: POLi & PayID: 0%, Direct Deposit/Bank Transfer: 0%, BPAY: 0.9%, Cash: 2.5%
- Fiat Currencies: AUD
- Cryptocurrencies: BTC, BCH, ETH, LTC, XRP, BSV, EOS, GRT, TRX, ADA & 360+ more
How is cryptocurrency taxed in Australia?
The profit made from crypto is calculated in AUD amounts when you exchange cryptocurrencies for AUD, other cryptos, or products and services. Depending on each specific situation, you may be subject to:
- Personal (Taxed as an investment): If you purchase and sell cryptocurrencies solely for personal investment purposes, you will belong to this group. Many people that engage with cryptocurrencies will also be in this group, and their gains or losses will often be liable to the Capital Gains Tax (CGT).
Examples of taxable activities include:
- Purchasing cryptocurrencies to hold them for a long term
- Obtaining forked, mined cryptocurrencies or airdrops
- Taking part in casual cryptocurrency trading activities
- Trader (Taxed as business income): Those that engage in crypto operations solely to generate a business profit will belong to this category. Their gains or losses may be subject to the relevant income tax rather than CGT.
Examples of taxable activities include:
- Commercial cryptocurrency mining
- Professional cryptocurrency trading
- Crypto-related business activities
Capital Gains Tax (CGT) in Australia
The ATO considers crypto as an asset similar to stocks or real estate, not a currency. This implies that it’s a taxable event each time you sell or exchange cryptocurrency. If you earn a profit on a transaction, you will be required to pay capital gains tax. As a crypto investor and trader, you need to pay attention to:
- Long-term CGT Discount
There is a discount for long-term owners of an asset. If you own a digital asset for more than a year, you will only be taxed on 50% of the capital gain.
For Example:
- You buy 1 Bitcoin Coin (BTC) at $35,000
- Three years later, you sell it for $45,000
- You have got a Capital Gain of $10,000
You are subject to Capital Gains Tax on $5000 (instead of $10,000).
- Capital Losses
There is a capital loss if the value of your cryptocurrency is lower when you sell it than when you bought it. In the same fiscal year or subsequent fiscal years, capital losses can be used to offset capital gains.
For example:
- You make a Capital Gain of $10,000 on your first transaction.
- You buy another coin for $40,000.
- Three months later, you sell it for $36,000.
- That is a Capital Loss of $4,000 on the second transaction.
You are only subject to Capital Gains Tax on $6,000 (instead of $10,000).
- Capital Gains Exceptions
Depending on how you use your cryptocurrencies, you may be free from crypto taxes in these cases:
- Personal Use: If you use cryptocurrency for goods or service purchases, it is considered a personal-use asset and is thus exempt from CGT. There is more information available here.
- Donations: If you give cryptocurrencies to a charity, it’s not a Capital Gains event, and you may claim the amount on your tax return.
- Lost/Stolen Coins: If your coins are lost or stolen (for instance, if you lose your cold storage wallet), you can claim the coins’ value when they were stolen or lost as a capital loss.
- Crypto to crypto trading
In a given tax year, it is feasible for users to perform just crypto-to-crypto exchanges without ever utilising fiat currency. Although crypto-to-crypto trading implies that any profits you have earned have not involved AUD, CGT still applies.
When exchanging one cryptocurrency for another, you get an asset rather than cash for the initial coin. Therefore, you will need to keep track of all your transactions to calculate your Capital Gains and Capital Losses for your tax return.
Where to get a record of my CoinSpot transactions?
1. Go to Account Menu(1) -> Choose Order History(2).
Figure 1. My Account Menu – Order History
2. Review your EOFY Prices, EOFY Statements, Buys/Sells CSV and Sends/Receives CSV.
Figure 2. Review your CoinSpot tax statement
How to download or export my EOFY Statement?
You can download and save your EOFY statement using the print menu.
1. Choose EOFY statements(1) -> Choose an EOFY year(2).
Figure 3. Select Year for EOFY statement
2. Click the ‘Print’ button.
Figure 4. Select Print button
3. On the print page, make sure you save the Destination by choosing “Save as PDF”(1) -> Select Save(2).
Note: The interface may differ on the print page depending on different web browsers.
Figure 5. Save your CoinSpot statement
How to create a CoinSpot tax statement with the tax report tool?
To provide the Australian Taxation Office (ATO) with all your taxable transactions on CoinSpot – including capital gains and losses and your income from crypto, you first need CoinSpot trading and transaction history. Then, there are two ways for you to generate a CoinSpot tax statement with the tax report tool.
- Import CSV files from CoinSpot: You can log into your account and export CoinSpot transaction history in a CSV file. Remember to download both the sends/receives CSV file and the buys/sells CSV file to calculate your crypto taxes accurately.
Step 1. Open the CoinSpot Order History page
Step 2. Click ‘Buys/Sells CSV’ to download your trade history. You can also click ‘Sends/Receives CSV’ to download your deposits and withdrawals.
Step 3. Import the downloaded CSV file(s) to the tax report tool (We will show how to import CSV files to Bear Tax and Koinly later)
Figure 6. Import CSV files from CoinSpot
- Connect with tools via an API: You can use the CoinSpot tax report API and set up your chosen crypto tax tool. The API will automatically fetch your entire transaction history and import it into the app.
Step 1. Open the CoinSpot Order History page
Step 2. Select the Generate New API Key button
Step 3. Provide any name you like, and select the Read-Only API key type
Step 4. Provide your Two Factor Code for security concerns
Step 5. Confirm the new API key via your email
Step 6. Get the API secret, and copy the CoinSpot API Key and Secret
Figure 7. Create your CoinSpot API Key
FAQs
Does CoinSpot provide tax reports & statements?
Unfortunately, no. CoinSpot doesn’t provide complete tax reports & financial statements. However, you can use your CoinSpot trading history as a financial statement to calculate your crypto taxes and use third-party apps to give your CoinSpot tax report to the ATO.
How to create CoinSpot tax statements?
You can manually prepare a CoinSpot tax statement or use a crypto tax tool. If you are an active crypto trader with hundreds or thousands of deals over the fiscal year, you can resort to CoinSpot tax calculators like Koinly, Cointelli or TurboTax. Use the CoinSpot tax report API or upload CSV files containing your CoinSpot transaction history. Then, depending on your location, your crypto tax app creates pre-filled tax reports. This would be the ATO myTax report for Australian investors.
Does CoinSpot report to the ATO?
CoinSpot will be likely to report to the ATO. The ATO gathers information from all Australian-based Designated Service Providers (DSPs) of cryptocurrencies. As one of the most prominent cryptocurrency exchanges, CoinSpot is almost certainly designated a DSP by the ATO and has likely been compelled to provide KYC information to guarantee tax compliance.
Does CoinSpot supply a financial statement?
No. But your CoinSpot trading history can be used as a financial statement to prepare a tax return for the ATO. Follow the above instructions to export your CoinSpot transaction history, calculate your crypto taxes manually or upload it to a crypto tax tool to get a CoinSpot tax statement in minutes.
Does CoinSpot provide an end of financial year statement?
Yes, you can go to Order History and download the EOFY statement from CoinSpot.
What tools can I use to help me with my tax return?
Many tools assist you in record keeping and generating reports for tax time, including Koinly, BearTax, TurboTax, Cointelli, Coin Tracking and CoinLedger, etc. You can import your cryptocurrency data immediately and know your CoinSpot gains/losses, crypto income and more to submit an accurate CoinSpot tax return to your tax office.
