Are NFTs taxable in Australia?

In some countries, the tax implications of crypto assets is a hazy subject, but not in Australia. Assets, including NFTs, attract a CGT levy, and the ATO mandates proper record-keeping.

Cryptocurrency assets can be liquidated in Australia using intermediaries’ services like an exchange or an ATM provider.

NFT assets are available in Australia, but there is a possibility that a particular asset like CryptoPunks might not be listed on all exchanges.

Invented by Satoshi Nakamoto, the purpose of Bitcoin was to be developed as an ‘electronic cash system’

Dogecoin, considered the world’s first joke or meme crypto, is available in Australia.

Tax is due when a CGT event arises. CGT is not levied when donating a crypto asset to a DGR.

Bitcoin essentially derives value from backers who continue to believe that the cryptocurrency can one day find broader utility. Any severe blow to this belief can trigger heavy losses in value.

There are speculations that Bitcoin and altcoins might bounce back and fears that values may drop even further given the atmosphere of high interest rates.

For now, no Bitcoin transfers can be made without recording changes in the underlying blockchain network, for which internet connectivity is a must.

Some say, Bitcoin could be a not-for-profit currency system, which exists only to provide a blockchain-supported digital currency to people.