Key takeaways
- Rabby Wallet does not report directly to the ATO.
- The ATO can still trace your identity through data matching.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Rabbyâs tax reporting policies within Australia. Weâll also break down a simple way to report your Rabby taxes in minutes.
What is Rabby Wallet?
Rabby Wallet is a multi-chain, decentralized crypto wallet developed by DeBank. Itâs become one of the most popular wallets for Ethereum and EVM-compatible chains due to its cutting-edge security features.Â
As a decentralized wallet, Rabby does not require Know Your Customer (KYC) verification or issue tax forms. Users must track their own transactions and report taxable events to the Australian Taxation Office (ATO).
Does Rabby Wallet report to the ATO?
While Rabby Wallet does not report to the ATO, tax authorities can track your income:Â
- Blockchain transparency: Transactions made on Ethereum and other blockchains are publicly visible.Â
- Data-matching program: The ATO uses crypto data-matching to gather records from AUSTRAC-registered exchanges and compare them against tax returns. Itâs likely the ATO can use this information to link âanonymousâ wallets to known investors. â
- Reporting: The Crypto-Asset Reporting Framework (CARF) will begin in 2027, requiring exchanges and custodial platforms to report more detailed transaction information. This will give the ATO added visibility into transactions.
If I use Rabby Wallet in Australia, do I owe taxes?
Yes. Crypto activity via Rabby is taxable under Australian law:
- Capital gains: Selling or swapping crypto triggers a Capital Gains Tax (CGT) event. Holding assets for more than 12 months may qualify for a 50% CGT discount.
- Income: Staking income and other rewards are taxed as ordinary income upon receipt.Â
Moving assets between wallets you own is not a taxable event.
Does Rabby Wallet have KYC?
Rabby Wallet does not collect user identity information.
Is Rabby Wallet legal in Australia?
Yes. Rabby is legal to use in Australia.Â
You are required to report your capital gains and income from your crypto transactions to the ATO.
How do I avoid Rabby Wallet taxes in Australia?
While you cannot avoid paying taxes, there are ways you can reduce your tax liability in Australia:Â
- Tax-loss harvesting: Selling crypto at a loss can offset gains and reduce your tax bill. Some investors choose to intentionally claim losses for tax benefits! â
- Use crypto tax software: Crypto tax software like CoinLedger can automatically import your transactions from Rabby and other wallets and help you find your biggest tax-saving opportunities.
Looking for a simple way to report your Rabby taxes? With CoinLedger, you can import your Rabby transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Rabby 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
Managing Rabby Wallet activity manually can be complicated. CoinLedger can simplify the process by importing your wallet history, allowing you to track gains and income in one place, and creating ATO tax reports in minutes.Â
Get started with a free CoinLedger account today.
