ATO Crypto Tax Audit & Review: What to Do

Why the ATO contacts crypto users

The ATO receives data from Australian exchanges and matches it against tax returns. If your reported income or gains look too low, or if you didn't lodge at all, you may receive a letter asking you to explain or amend.

Types of ATO contact

• Pre-filled data letter — shows estimated income or disposals and asks you to check.
• Review — a deeper look at your crypto activity for a year.
• Audit — formal examination with document requests and potential penalties.

Don't ignore it

Ignoring an ATO letter leads to default assessments, penalties and interest. Respond by the due date, even if it's just to ask for more time.

Gather evidence

Prepare exchange statements, wallet addresses, transaction histories and a clear calculation of gains, losses and income. Crypto tax software can produce a report the ATO will accept as evidence.

When to get help

If the amounts are large or you have multiple years to amend, involve a crypto-specialist registered tax agent. They can manage the ATO correspondence and minimise penalties.

General information only, current as a guide to ATO rules — not personal tax advice. Crypto tax depends on your circumstances. Verify with the ATO or a registered tax agent before you lodge.