Hi aussies. I’ve been using Celsius for a few months. I’m not using their loans, I’m just using them as a savings account and to earn interest on the coins I store there.
I just spoke to ATO and they advised that because Celsius is not a bank, and because when you put your money in there you transfer ownership to them, it is considered a ‘disposal’ and therefore it’s a taxable event. This means that I now have to pay tax on the 10k I made on Bitcoin because i bought it at 50k and put it in Celsius when it was around 60k, so there’s a 10k taxable event. And, when I take the Bitcoin back out, which is now worth 65k, I trigger Another taxable event, and I have to pay tax on the 5k.
It’s a shock to me. I don’t know why ANYONE would use Celsius, here in Australia or in the states. Irs would treat it the same. Anyway, I hope this message helps someone out there so you don’t have to pay tax on crypto unnecessarily. Remember, you still have to pay tax in australian dollars regardless of if you have actually sold your crypto or not. It’s not a case where you can avoid the tax until you sell - you pay the tax on any interest earned, and on any disposals, at tax time. Basically you’ll need to save aud to pay for tax on crypto you may still hold.
Please reach out if any questions. And please tell your friends
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