Now let’s review a more complex issue: Capital Gains Tax. As we already mentioned, it’s the tax you need to pay on a profit that arises from disposing of the cryptoassets.
For the tax purposes dispose
means “getting rid” of the assets by any means: selling, swapping, gifting, buying goods and services with cryptocurrency etc. Each of these actions trigger CGT event.
Let’s view on some of the typical CGT events in details:
- selling a cryptoasset (cryptocurrency or NFT) for fiat currency, such as the Australian dollar;
: you bought Coin A for $3,000 and later sell it for $4,000. You'll need to pay tax on the resulting $1,000 gain.