Comments Have Closed on the ATO's Crypto Airdrop Ruling — and a Second Draft on 'Wrapped' Tokens Is Also Awaiting a Final Version

Highlights The second is the draft determination, "Income tax: capital gains tax consequences of using a smart contract to wrap and unwrap crypto assets". The ATO says the ruling deals with how the income tax and capital gains tax (CGT) provisions apply when a crypto asset is issued, received or disposed of by airdrop. A wrapping contract exchanges a crypto asset for a "wrapped" equivalent, often so it can be used on certain protocols or platforms. Consultation on the ATO's draft crypto airdrop ruling and its companion determination on wrapping tokens has closed, but the Tax Office still lists both final versions as "To be advised", leaving holders working from preliminary views. The public comment period on the Australian Taxation Office's draft ruling on crypto airdrops closed.