Australian residents are obliged to report both profits and losses from cryptocurrencies

The Australian Taxation Office has obliged citizens of the country to indicate in their tax reports the profit (or loss) from transactions with digital assets.

Monitoring of cryptocurrency transactions has become one of the main tasks of the tax service. It is emphasized that falsification of data on transactions with digital assets will lead to «severe consequences».

Digital assets include both cryptocurrencies and collectible tokens. If traders make a profit, they will have to pay tax, while long-term investors (people who have held the asset for more than 12 months) will pay tax at a reduced rate.

It is worth noting that in Germany, the taxation scheme is more progressive: after a trader has held cryptocurrency for more than 12 months, he or she is not obliged to pay taxes on profits.