Fiscal Year
Fiscal year means a tax year. It is also called a financial year. Every tax year has a beginning and an end. After a tax year ends, tax authorities expect to receive tax returns from individuals. Tax returns report only taxable events (e.g. income received, expenses, sale of cryptos) that occur within a given fiscal year. Once one tax year ends, the next tax year begins immediately so nothing falls through the cracks.
Therefore, if you sell cryptos after the end of a tax year, that sale does not get to be reported in that year’s tax return. That does not mean it will not be reported at all, but the reporting will be deferred to the following tax year in which the sale occurred.
Note that different countries have different dates that determine their tax years. For example, the tax year in the US starts on January 1st, while in Australia, the tax year starts on 1st of July.
New Tax Year in Australia
Today is 1st of July 2021. The new fiscal year (FY) 2021-2022 has now commenced in Australia!
The fiscal year that ended yesterday was FY 2020-2021, which started last year (1st of July 2020). Thus the tax return for FY 2020/21 will be due before the end of this year. Usually, the deadline is 31st of October to submit individual tax returns in Australia, however if one uses tax accountant to submit their tax returns, the deadline can be extended (it can go into the following calendar year).
Thus for the time being, we need to focus on what we did during the tax year that just ended so we can prepare a proper tax return. What we earn or sell from today will be a focus for next year’s tax reporting.