Ok so firstly i am new to mining and am currently assembling a few 7 card rigs to start mining very shortly. My hope is to grow this venture to a 20 rig operation inside of 18 months and assess options from there.
My question is to anyone who has been mining under Australian Taxation Laws / Guidelines as to what their strategies are to reduce / avoid tax when converting to Bitcoin and eventually AUD.
My understanding currently is Bitcoin attracts a CGT component and when converted to AUD’s is treated as Assessable income.
Any help / advice is much appreciated.
Yea, with these electricity prices you don’t have to worry about any income lol. I know. Hopefully you have good friends around the world, who you can team up with and run your operation elsewhere. With 20 rigs the monthly difference in aussie electricity price and cheap eletricity price is about 5$k. secondly - 20 rigs needs a lot of power. I have three phase 100AMP circuit breaker in my house in Perth and im not even sure its enough for 20 rigs. Good luck with single phase lol.
Hi Hanskan and thanks for the reply. Power issues aside, as everyone’s circumstances differ, what setup were / are you running and did you have any issues with the Taxation side of things.
cheers
Run your rig on solar like i do here in Brisbane. 10Kw on each phase. Zcash and Bitcon farming.
In regards to Tax you now need to declare Bitcoin so if your money exchanges involve bitcoin you need to state
Yeah, I’ve got some advice. Get out of this tax-happy, big-brother butthole of a country.
Hi Stu_Dog,
from what i have read so far it is not possible to convert anything other than bitcoin to AUD’s? Is this correct or am I missing something somewhere. Your solar set up sounds interesting as I’m only up the road from you - Gold Cost Hinterland. Do you run mains during 0 sunlight hours or are you running battery storage also how many rigs are you running at present? I’ve done the power projections on solar battery storage for what i eventually want to run and the battery storage required is massive.
cheers
Try ATO GOV AU search under Cryptocurrency or either Bitcoin. However, it gotto have to earns or holding any token that worth over $18,000 plus per year then start doing about it, otherwise record keeping will do, it had shown. Hope this help! But anyway, go through it and seek more advices by the accountant if you need.
cheers thanks for the reply bnmnb - i plan to bring it up with my accountant but more interested in what people are doing to minimise or AVOID paying tax on their hard earned currency i.e. offshore accounts etc…
Something you might try is getting a Bitcoin card. So you basically transfer your ZEC to the card convert to BTC and spend it everywhere VISA is accepted. This you might see as your offshore account. link below
thanks for the heads up blackwidow i will definitely do some research into it