Key takeaways
- Base App does not report directly to the ATO.
- The ATO can still trace your transactions if you move funds between Base App and an AUSTRAC-registered exchange like Coinbase.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Base’s tax reporting policies within Australia. We’ll also break down a simple way to report your Base taxes in minutes.
What is Base App?
Base App (formerly known as Coinbase Wallet) is a self-custody wallet that combines crypto storage and trading with built-in social and messaging features.
Base App itself doesn’t collect Know Your Customer (KYC) information or send tax forms. However, your wallet address can often be connected to your identity if you’ve transferred funds between Base App and an exchange registered in Australia.
Does Base App report to the ATO?
No. Base App doesn’t share data with the ATO or issue tax forms.
That said, the ATO can likely trace your Base App transactions:Â
- Blockchain transactions are publicly visible. If you've transferred crypto to/from a centralized exchange like Coinbase, it’s likely the ATO can identify your wallet.Â
- The ATO’s crypto data-matching program already covers millions of Australian accounts by pulling data from AUSTRAC-registered exchanges. The ATO uses this data to crack down on crypto tax fraud.
If I use Base App in Australia, do I owe taxes?
Yes, crypto transactions on Base App are taxable in Australia.
- Capital gains: Selling, swapping, or spending crypto is subject to capital gains tax. If you hold for more than 12 months, you may qualify for a 50% discount.
- Income: Rewards from staking and airdrops are taxed as ordinary income at the time of receipt.Â
Moving crypto between your own wallets (such as from Coinbase to Base App) is not taxable.
Does Base App have KYC?
No. Base App does not require KYC.Â
However, if you purchase crypto inside the app using Coinbase’s integrated exchange service, you may be required to verify your identity.
Is Base App legal in Australia?
Yes. Using Base App is legal in Australia.
You are required to report your taxable income from Base App and other cryptocurrency platforms to the ATO.
How do I reduce my Australian taxes from Base App activity?
You can’t legally evade taxes, but there are steps you can take to legally reduce your tax bill:Â
- Tax-loss harvesting: By selling crypto at a loss, you can offset gains and lower your taxable income.‍
- Use crypto tax software: Crypto tax software like CoinLedger makes it easy to generate a tax report and find your biggest tax-saving opportunities.
Looking for a simple way to report your Base taxes? With CoinLedger, you can import your Base transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Base 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 makes it easier than ever to report your crypto taxes in Australia:Â
- Import your transactions from Base App and hundreds of crypto platforms automaticallyÂ
- Track capital gains and income in one place.
- Generate ready-to-lodge ATO tax reports in minutes.Â
Get started with a free CoinLedger account today.
