Bitcoin

[Greynomad]

Far too complex and fraught with risks... best leave it alone IMHO.

[T1 Terry]

..... gains will be counted as income and you will need to declare it for tax.

Taxation rules within the Australian tax system are quite limited in their scope and coverage in regards cryptocurrencies. Govt is still playing catchup. The volatility of Crypto is a problem, especially if you declare a profit to the ATO on 30 June (any year) and the coin then tanks on the 1st Jul. There are plenty of examples of a 100% profit on one day becoming a 110% loss a couple of days later. Aust tax rules can drive you into bankruptcy as a consequence of the vagaries of the market and the rigidity of a Financial Year, 1 Jul to 30 Jun next calendar year. Of course you can consolidate (Sell) on 29 Jun and get back in (Buy) on the 1st Jul, but prices can move a lot in a couple of days.

Research before investing in any Crypto needs to include gathering information on a range of tax bill buffering and tax minimising structures. Off Grid buying and selling is another area full of pitfalls. Putting crypto on a Debit Card and immediately spending that value across borders is a way of effectively minimising the spread in Buy/Sell prices for foreign currency.

Iza

Also can be a great way to buy from say China and avoid the currency issues because they sell in USD and the exchange rate between AUD and USD seems to be always at the time the exchange rate was worst and there is always an "exchange fee" slipped in somewhere. Then Aust customs add a 10% GST on the AUD price you paid, plus on the AUD cost of freight ..... the landed price can be way more than the calculated purchase price when it was bought.
Crypto currency is worth what the exchange rate was on the day you do the transaction, the exchange rate can be a lot worse when it comes to the customs declaration because they really don't have a direct exchange rate because it really is time of day dependant as much as daily and weekly fluctuations. The down side is you might pay with Cryto that was worth $5,000AUD at the time and it suddenly shoots up to be worth $7,500AUD ..... A lot of risks, those who invested early made a killing, those who got involved later often lost the house

T1 Terry