You can easily get your HardBlock taxes done in Syla, ensuring you pay the lowest tax on your bitcoin legally possible.
What is HardBlock
HardBlock is an Australian bitcoin exchange that focuses exclusively on bitcoin investments for Australians. The platform was first established in 2014 and is designed to assist users in purchasing, selling, and securely holding bitcoin.
Some of the biggest benefits for Australian investors include:
Automated DCA - Set an automated process for depositing money from your bank account directly to your bitcoin wallet.
Self-Custody - HardBlock encourages self-custody of bitcoin, providing users with a high level of control over their bitcoin.
Customer Service and Community - Excellent customer service through real interactions with people, while also engaging with the wider bitcoin community through initiatives such as sponsoring the Australian Bitcoin Podcast.
How is bitcoin taxed on HardBlock
Ever since the first ATO bitcoin tax guidelines were introduced back in 2014, it’s been clear that bitcoin is taxable. As an Australian taxpayer, you are legally required to declare your local and worldwide income, including your bitcoin gains and losses on HardBlock.
There are two types of assessable income that your bitcoin investments are taxed on in Australia:
Capital Gains Tax - You’ll end up with capital gains whenever you purchase bitcoin, and later sell it for a higher price. Capital gains and losses can result from trades, swaps, gifts and many other transaction types.
Ordinary Income - You can easily end up earning income from a number of sources such as affiliate commissions. These sources of income also need to be declared on your income tax return.
Tax on bitcoin is complicated, which is why most tax professionals recommend using crypto tax software to automate the tax calculations for you. That way you won’t make mistakes that could trigger an ATO audit.
HardBlock is an AUSTRAC registered Digital Currency Exchange (DCE). As an AUSTRAC registered DCE, HardBlock must perform KYC and know the identity of their customers. This is important for preventing scammers and criminal activity.
Since 2019 the ATO has been operating a data sharing program with Australian Digital Currency Exchanges. Under the data sharing program, the digital currency exchange must provide transaction data of their users to the ATO when requested.
In short, the ATO knows your transaction history on HardBlock. You’ll know the ATO has your bitcoin transaction data, as it will show in the prefill report on your tax return.
The ATO is only getting smarter at analysing bitcoin transactions. Even if your bitcoin transactions don’t show up on your prefill it’s still important that you do calculate and declare your bitcoin gains, otherwise it’s only a matter of time before the ATO comes knocking.
How to do your HardBlock taxes
Our Australian financial year starts on the 1 July and ends on the 30 June each year. You can prepare and lodge your tax return after the 30 June.
You have until the 31 October to lodge your individual tax return, or you can get an extended lodgement deadline till 15 May when lodging through a registered tax agent.
There are three ways you can complete your tax return for bitcoin:
Do it yourself by hand in a spreadsheet. 😭
Provide your transaction statements to your tax agent / accountant.
Use crypto tax software to automate the calculations and optimise for lower tax.
If you decide to do it yourself by hand, then you will need to be very careful to track the individual cost base of each bitcoin investment, and calculate the capital gain or loss on each disposal. This might be okay if you only have a handful of transactions. 👍
Otherwise, you can use Syla to do your HardBlock tax report and tax optimisation:
Under the Transaction History Report section, click Email Report.
Check your email and download the attached file.
Upload your Transaction History CSV to Syla and click import.
Pay the lowest tax on your bitcoin and save the hassle
It's very difficult to correctly calculate all the tax outcomes of your bitcoin by hand unless you're a tax professional.
If you are using a tax accountant, then you probably don’t want them doing it by hand either, as it's going to take a long time and cost a lot.
That’s where using cryptocurrency tax software can save you a lot of time that you’d rather spend doing something else. 😊
Syla is the only tax software for bitcoin that has been designed specifically and only for Australia. Syla not only calculates all your tax outcomes to ensure you are ATO compliant, but it also optimises your tax to ensure you pay the lowest tax legally possible, saving you both time and money.
Best value - $59 AUD for 10,000 transactions.
Absolute certainty - purpose-built for Australian tax law.
Maximise your tax savings - using Syla’s proprietary LTFO method.
With taxes in Australia capping out at an excruciating 47%, the question on the mind of many crypto investors is, how do I avoid paying crypto tax? While it’s rare to be able to fully reduce your tax to zero, there are some well know strategies within the tax industry that you can use, and a number of situations where you can legally avoid crypto tax entirely.