With the extraordinary growth of cryptocurrencies and the Blockchain ecosystem in Australia over the past years, we at BLinks 360 are reaching out to the community to help you understand the current view that the Australian Taxation Office (ATO) has on cryptocurrencies, and to ensure investment structures are established to best suit your needs.

Business Operator

If you receive bitcoin for goods or services you provide as part of your business, you will need to record the value in Australian dollars as part of your ordinary income.  The value in Australian dollars will be the fair market value which can be obtained from a reputable bitcoin exchange, for example.

Trader and Miner

The goal of a trader is the frequent buying and selling of investment instruments with a goal of generating returns that outperform buy-and-hold investing. If you are mining cryptocurrencies, any profit you make should be included in your assessable income. This is on the basis that the ATO considers you to be carrying on a business.

Personal Use Asset

With some guidelines provided by the Australian Taxation Office you won’t be subject to income tax for any increase on the value of the cryptocurrency if you originally purchased the cryptocurrency as a way to buy goods and services for your own personal consumption.

Investor

The goal of investors is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of investment instruments. Although both investors and traders are seeking profits through market participation, generally investors seek larger returns over an extended period via buying and holding investments whereas traders take advantage of both rising and falling markets to enter/exit positions over a shorter timeframe.

Once you have decided to invest in cryptocurrencies, the most important decision you will make is, what structure should I invest or do business in?

The most common types of structures in Australia are: Sole Trader, Partnership, Companies, Trust and SMSF. Book a time chatting with us to find out what is the best structure for you.

Our main services.

Tax Compliance and Strategy

Complying with tax regulations are part and parcel of running any business but can easily become a time consuming headache for business owners and managers.

Payroll and HR

At all times you are informed, have oversight of all payments and processes and may make changes as required though face to face or virtual meetings.

Management Accounting

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