ATO focuses on cryptocurrency tax avoidance and WFH claims

The ATO has signalled that cryptocurrency gains and working from home expenses will be among its prime targets in this year’s review of tax returns.

The ATO will be taking steps to clarify tax obligations to Australians with cryptocurrency assets over the coming months. This is aimed at addressing the incorrect assumption by many taxpayers that their cryptocurrency gains are tax free or only taxable when the holdings are cashed back into Australian dollars.

According to the ATO, gains should be treated the same as other investments, such as shares, and will be subject to capital gains tax (CGT) and must be reported.

Expenses claims from working from home will also be among the ATO’s targets in their review of tax returns.