A new report into the Australian cryptocurrency industry has found that almost half of Australians are unaware of the obligation to report crypto holdings to the ATO, highlighting the need for increased education and resources.
The findings were revealed in Koinly's Australia Crypto Report 2023, which shed light on the latest trends and insights in the Australian cryptocurrency market.
The report also found that of crypto investors, 15.4% did not know that they have an obligation to report crypto on their tax return.
The report showcased a significant adoption rate, with approximately 31.6% of Australians having either held or currently holding cryptocurrencies. It also revealed a shift towards gender diversity in the crypto space, as women aged 18-24 were found to be more likely to hold or have held crypto compared to their male counterparts.
In addition to the Australia Crypto Report 2023, Koinly's NFT Investors Report provided valuable insights into the world of non-fungible tokens (NFTs). The report found that all individuals who disposed of NFTs did so at a loss for tax-loss harvesting purposes.
Additionally, it revealed that over three-quarters of people currently holding NFTs do not plan on selling them within the next 12 months. The average number of NFTs bought by investors was found to be 97.
Adam Saville-Brown, Regional Head of Koinly in Australia, emphasised the importance of educating crypto investors about their tax liabilities and staying informed about market trends.
"The Koinly Australia Crypto Report 2023 offers valuable insights into the evolving crypto landscape in the country," he says.
"As cryptocurrency and NFTs continue to gain momentum, it is crucial for investors to understand their obligations and stay informed about market trends. This report not only sheds light on the current state of the industry but also serves as a guide for individuals navigating the crypto space."
With almost half of Australians being unaware of the obligation to report crypto holdings to the Australian Taxation Office (ATO), Saville-Brown stressed the need for increased education and resources.
"The message is clear: if you've bought, sold or earnt interest from cryptocurrency in the last financial year, you'll need to declare your crypto totals on your income tax return," he says.
The report also showed:
- 31.6% of Australians hold or have held crypto
- Women aged 18-24 are more likely to hold or have held crypto than their male counterparts
- Of crypto investors who have transactions to report, know that they are obligated to report them to the ATO, but do not intend to, 80% are men
- Almost half of Australians don't know that they have an obligation to report crypto holdings to the ATO
- Of crypto investors, 15.4% did not know that they have an obligation to report crypto on their tax return
- 57% of crypto holders are between the ages of 25-44
- 49% of crypto investors are earning between $60,000 and $149,999 AUD / year
- Individuals with a partner and their youngest child between the ages of 3-12 are the biggest group of crypto holders, followed by individuals living alone
- The majority of crypto investors think now is the best time to buy more crypto
- Of crypto investors who bought NFTs, the average number of NFTs they bought is 97
- 100% of people who have disposed of NFTs did so at a loss for tax loss harvesting
- Over 3/4 of people still holding NFTs do not plan on selling them in the next 12 months
- About half of the people who bought an NFT would do so again
- Utility is the main thing that would make crypto investors want to buy an NFT again