Tax implications for bitcoin miners (Australia)

[Kasnec]

I apologise for my total lack of understanding. Capital gains + tax in general + bitcoin is incredibly confusing.

If I'm mining bitcoin and earning say $100 per week, how is tax calculated from that? (For example, if I withdrew the equivalent of $100 straight from my bitcoin wallet into my bank). How would one declare that income for tax purposes?

If it cost me say $2000 for the miner and therefore takes 20 weeks to earn back the cost, would the tax be calculated for whatever profit made after that?

Anyone has further information on mining bitcoins & tax in Australia, all is appreciated!

[mymenace]

here you go, all of it and how to apply to your situation

https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia---specifically-bitcoin/


declare assets and income with your tax return

tax is on profit only



Mining bitcoin

Where you are in the business of mining bitcoin, any income that you derive from the transfer of the mined bitcoin to a third party would be included in your assessable income. Any expenses incurred in respect to the mining activity would be allowed as a deduction. Losses you make from the mining activity may also be subject to the non-commercial loss provisions.


read carefully though for example: "Where you are in the business of mining bitcoin"

I do not know if this refers to a bitcoin mining business as well as personal bitcoin mining