What do I have to consider when buying bitcoin in Australia?
There are a lot of factors to consider when buying bitcoin. Firstly, you should always compare current prices and fees to avoid overpaying. Secondly, terms and conditions on the use of different payment methods vary between different bitcoin exchanges. Thirdly, you want to make sure that your bitcoin exchange has a good security track record and that the identity verification process is smooth. Finally, as bitcoin is traded in USD on most exchanges, there may be exchanges that offer a much better exchange rate for AUD than others.
Do I have to pay tax on bitcoin in Australia?
Starting July 2017, purchases of bitcoin and other digital currencies are exempt from the Australian GST. However, when selling Bitcoin, any capital gains have to be taxed.
How high are the taxes on bitcoin in Australia?
Selling bitcoin is a taxable event in Australia and subject to capital gains tax. Similarly, exchanging one cryptocurrency into another is also a taxable event. The capital gains tax is the same percentage as your individual income tax rate for assets held for less than 12 months and half your individual income tax rate for assets held longer than 12 months.