Key takeaways
- Jupiter Exchange does not report directly to the Australian Taxation Office (ATO).
- The ATO can still track your trades using blockchain analysis and its crypto data-matching program.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Jupiter’s tax reporting policies within Australia. We’ll also break down a simple way to report your Jupiter taxes in minutes.
What is Jupiter Exchange?
Jupiter Exchange is a Solana-based decentralized exchange (DEX) aggregator that allows users to find the best trades currently available on the blockchain.
Because it is non-custodial, Jupiter does not collect Know Your Customer (KYC) information and does not issue tax forms.
However, if you transfer crypto between Jupiter and an exchange registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), it’s likely the ATO can track your transactions.
Does Jupiter Exchange report to the ATO?
Jupiter does not send data to the ATO or issue tax forms.
However, it’s likely that tax authorities can still trace your transactions:
- Blockchain transparency: All Solana trades are publicly visible. This means that your wallet can be identified if you transferred to/from an exchange with KYC.
- Data-matching program: The ATO’s crypto data-matching program collects records from AUSTRAC-registered exchanges and compares them against taxpayer filings. It’s likely that this information can be used to identify ‘anonymous’ wallets.
If I use Jupiter Exchange in Australia, do I owe taxes?
Cryptocurrency activity on Jupiter and other platforms is taxable in Australia:
- Capital gains: Swaps on Jupiter are considered capital gains tax (CGT) events. If you hold assets for more than 12 months, you may qualify for the 50 percent CGT discount.
- Income: Staking rewards, airdrops, and yield farming are taxed as ordinary income at receipt.
Moving crypto between your own wallets is not a taxable event.
Does Jupiter Exchange have KYC?
No. As a decentralized exchange, Jupiter does not require ID verification for users.
Is Jupiter Exchange legal in Australia?
Yes. Jupiter is legal to use in Australia.
You are legally required to report taxable income to the ATO.
How do I reduce my Jupiter taxes in Australia?
While there’s no way to avoid taxes entirely, there are strategies you can use to reduce your tax bill:
- Tax-loss harvesting: By selling crypto at a loss, you can offset capital gains and reduce taxable income. Some investors choose to intentionally sell at a loss for tax benefits.
- Use crypto tax software: Crypto tax software like CoinLedger makes it easy to import Jupiter trades and find your biggest tax-saving opportunities.
Looking for a simple way to report your Jupiter taxes? With CoinLedger, you can import your Jupiter transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Jupiter and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
How CoinLedger can help
Here’s why 700,000 investors in Australia and across the world trust CoinLedger:
- Import your Jupiter transaction history with the click of a button
- Track both CGT and income in one dashboard
- Generate crypto tax reports in minutes
Get started with a free CoinLedger account today.
