Key takeaways
- Phantom Wallet does not report directly to the ATO.
- The ATO can likely still trace Phantom activity using blockchain analytics 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 Phantom’s tax reporting policies within Australia. We’ll also break down a simple way to report your Phantom taxes in minutes.
What is Phantom Wallet?
Phantom is a Solana-focused crypto wallet available as a browser extension and mobile. Phantom has become a popular choice for crypto investors who wish to stake Solana or connect to decentralized apps built on Solana or Ethereum.Â
Because it’s non-custodial, Phantom does not hold your funds or require Know Your Customer (KYC). If you buy crypto through Phantom using a card or bank account, the third-party provider may ask you to verify your identity.
While Phantom doesn’t report to the ATO, it’s likely that your activity can be tracked if you transfer to/from a centralized exchange.
Does Phantom Wallet report to the ATO?
No. Phantom does not share data with the ATO or issue tax forms.
That said, it’s likely that the ATO can still track your transactions:Â
- Blockchain analytics. Every Phantom transaction is public on the Solana blockchain. If you’ve ever transferred between Phantom and a centralized exchange, it’s likely your wallet address can be linked to your identity. ‍
- ‍Data-matching program. The ATO’s crypto asset data-matching program pulls data from AUSTRAC-registered exchanges, giving them information on thousands of Australian taxpayers.
If I use Phantom Wallet in Australia, do I owe taxes?
Yes. Crypto activity on Phantom and other wallets is subject to tax.
- Capital gains: Selling, swapping, or spending crypto is a taxable disposal subject to capital gains tax. Assets held over 12 months may qualify for the 50% Capital Gains Tax (CGT) discount.‍
- Income: Staking rewards, airdrops, and DeFi yields are taxed as ordinary income when received.
Moving crypto between your own wallets (for example, from Binance Australia to Phantom) is not taxable.
Does Phantom Wallet have KYC?
No. You are not required to submit KYC information to use Phantom.Â
Is Phantom Wallet legal in Australia?
Yes. Phantom is legal to use in Australia.Â
How do I reduce my Phantom Wallet taxes in Australia?
While there’s no way to legally evade your taxes in Australia, there are steps you can take to legally reduce your liability:Â
- Tax-loss harvesting: By selling crypto at a loss, you can offset capital gains and lower taxable income. It’s a great way to potentially save thousands on your taxes. ‍
- Using crypto tax software: Crypto tax software like CoinLedger can identify your tax-loss selling opportunities across Phantom and other platforms.
Looking for a simple way to report your Phantom taxes? With CoinLedger, you can import your Phantom transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Phantom 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 how CoinLedger can simplify the process of reporting your Phantom taxes:Â
- Import transactions directly from Phantom and hundreds of other wallets and exchanges.
- Track capital gains and income across all of your platforms.
- Generate ready-to-lodge ATO tax reports in minutes.
Get started with CoinLedger for free.
