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In this Koinly Australia review, I will discuss what features the Crypto tax report and tracking platform offers its users. We review how Koinly enables users to monitor their entire Crypto portfolio across multiple wallets, blockchains and exchanges. I will also review the Koinly pricing and show you how to get started. I hope you enjoy this Koinly app review and find the platform helpful for your Crypto taxes.
What is Koinly?
Koinly is a freemium automatic crypto tax software platform that aggregates your entire Crypto portfolio and produces country specific regulatory compliant tax reports. Koinly covers your entire Crypto portfolio, now matter how deep into crypto you are.
Its functionality tracks multiple crypto activities, including staking, mining, trading, swapping, airdrops, yield farming and much more. Making Koinly Australia a truly comprehensive tax solution for all your crypto needs.
Koinly automates everything for you through API connections into your favourite wallets, exchanges and crypto services. It also has functionality for your accountant to view your holdings. This will save hours and money on your end of year tax reports.
The API integration provides investors a complete view of their crypto portfolio. While the automation makes it a breeze compared to updating a spreadsheet.
Koinly is available in over 20 countries, including Australia. The Koinly app integrates with over 350 exchanges, 50+ wallets, 6,000+ blockchains and 10+ crypto services. The Koinly app offers all this integration and produces country specific regulatory compliant tax reports ranging in price from $49-$179USD.
If you find yourself spending lots of time reviewing your crypto portfolio, then you should consider checking out Koinly. Let Koinly Australia take control with its automatic crypto tracking and tax compliant reports. This Koinly app review will highlight why I love using the platform for my crypto tax reporting.
How Does Koinly App Work?
Koinly Australia is similar to Sharesight being an aggregator of your entire investment portfolio but not a brokerage platform. Therefore you can’t trade Crypto on Koinly, it aggregates all of your crypto holdings into one platform.
Most Crypto investors, myself included, have multiple crypto exchanges, wallets and services that we use to invest. I only review platforms or products I have used. Courtesy of Minted Millennials I have a few too many crypto apps to track. This Koinly Australia review is based on my experience with using the platform to track my entire crypto portfolio.
Prior to using Koinly I would do two things to track my Crypto portfolio. A trusty spreadsheet with weekly manual price updates for the less known crypto holdings. The other being checking all my crypto platforms one after the other and adding them up for a snapshot.
These methods were really inefficient and annoying. Plus they also made it extremely difficult to accurately track my tax liabilities. They also didn’t show my tax liabilities based on airdrops, interest and swaps.
I wanted a more efficient and accurate solution that gave me my time back and reduced the likelihood of errors come tax time. That is when I started using Koinly to track my crypto portfolio and tax liabilities.
Koinly Australia works by doing the following; Koinly integrates with your exchanges and collects historical transactions. It then calculates tax positions and you can download the report for your specific country.
The Koinly is able to integrate with numerous crypto exchanges, wallets, blockchains and services through their API. This means the crypto investors use Koinly to connect their chosen wallet or exchange and any future activity will be automatically tracked within the Koinly Australia platform.
When you connect your Koinly account to your chosen exchange or wallets it will also retrieve all your previous activity within that platform. This is an amazing feature and depending on your trades can be very fast to integrate.
For example, you could link your Swyftx account to Koinly and it will provide you with your tax liability based on your previous trading history. The speed it took to integrate my previous trading activity amazed me, the automation made it extremely simple.
I was able to integrate my 6 different crypto platforms with a couple years worth of transactions in under 20 minutes! The API integration makes tracking your crypto tax liability simple. However, if the API doesn’t work you can also upload CSV files.
When you initially integrate your chosen wallets or exchanges it is worth just double checking the level of accuracy shown in Koinly against the other platform. In my experience everything was correct, but there may be instances where there is a discrepancy.
Koinly gets price data from CoinMarketCap and CoinGecko. So if you have assets that aren’t listed there you will need to manually enter the transaction price. This occurs typically with ICO’s or low trading coins.
Koinly Tracks Total Crypto Return
Through integrating via API to your chosen wallet or exchanges Koinly is able to track your total crypto portfolio. You need to remember that the validity of the tax reports produced is determined by the data input.
If you don’t link all your holdings, then the report won’t be accurate. It is well worth the time to set up all your holdings to ensure you and your accountant are working with accurate data.
The thing I like about Kloinly is that it can differentiate between my capital gains/losses and income through lending/staking etc. This is very important especially for people with more complex investing strategies.
Investing through a Trust requires all income to be distributed to beneficiaries in the financial year. So it is extremely important to know the right amount of crypto income derived in order to distribute appropriately.
While it is possible to do this with a spreadsheet, I value my time too much to spend hours figuring it out and running the risk of mistakes. Especially given how hard the ATO is coming down on crypto investors.
Therefore getting my total crypto portfolio return and tax liabilities automatically makes life very easy when it comes to lodging my tax return.
Koinly Tax Reports
All investors need to understand their tax liabilities from investing in crypto. Most investors will use an accountant, while others will try and do it themselves. It doesn’t matter whether you will do it yourself or use an accountant, Koinly will make it significantly easier.
Koinly specialises in providing country specific compliant tax reports for its users. There are a few different tax reports you can get through Koinly Australia.
- Capital Gains Tax Report
- End Of Year Valuation Report
- Crypto Income Report
There are many other reports you can also download using Koinly yourself or provide your accountant with access to get the required information.
Capital Gains Tax Report
You can download a Capital Gains Tax Report with Koinly Australia to better understand your crypto gains or losses. This report provides you with all the information you require to assess your capital gain or loss position.
It highlights the number of trades you have made in the financial year, whether they were short or long term for a CGT discount. The report shows your crypto cost base and calculates your profits from disposing of the assets.
Tax report also calculates any capital losses made through the disposal of crypto in the financial year and offsets that against any capital gains you made. This then provides you with your net capital gain/loss position for the financial year.
This report is extremely valuable to you or your accountant when it is time to lodge your tax return. The more active you are at crypto trading, the harder the net gain/loss position would be to calculate manually. That is why I love using Koinly Australia for my crypto taxes as it makes everything so simple and accurate.
End Of Year Valuation Report
This report will provide you or your accountant with end of financial year valuations for your crypto holdings. This report is a lot more valuable for people that are investing with a Trust or SMSF. As most of these investing vehicles update their holding valuations at the end of the financial year.
This report is also useful for users to see their unrealised gains or losses from the crypto holdings. This type of report can be quite handy when working with an accountant for future wealth building strategies.
For example, if you are in a big capital loss position in your personal name it may be beneficial to transfer that asset to a discretionary trust and lock in a capital loss in your name. This capital loss can then be offset against your tax for the financial year.
Koinly Crypto Income Report
This crypto income report is extremely helpful when it comes to lodging your tax returns. Especially if you have gotten very creative with your crypto income generating portfolio.
This report includes activities like airdrops, forks, staking rewards, Defi and crypto interest. It is very important to be able to differentiate this crypto income from capital gains in your portfolio.
One of the main reasons for this is that the Australian Taxation Office (ATO) views the above activities as income earned through crypto and not a capital gain. This obviously has implications around how you declare to the ATO and what discounts you can or can’t use.
Koinly For Accountants
For anyone that is serious about building wealth through investing, an Accountant is a very important person to have as part of your team. Accountants can assist with your annual tax returns, but also help you set up the right investing structures in the first place.
An Accountant that knows and understands crypto, especially the world DeFi is worth their weight in gold. One of the biggest expenses when working with an Accountant is their billable hours for going through your last 12months trading across multiple platforms.
Koinly makes it super simple for you and your accountant. With a paid plan you are able to download tax reports that will have everything your accountant needs. This not only saves your and your accountant time, but also a lot of money in the process.
Koinly allows for existing users to provide their accountant with read access to their crypto holdings. The accountant can then view and download all required reports making it very simple come tax time.
The other way Koinly assists Accountants is by providing them with the Koinly service. This means an Accountant is able to manage all of their clients accounts from their single account. Making it easier for the Accountant to integrate Koinly Australia into their reporting process.
I can’t stress enough how simple Koinly is to use and how efficient it has made end of financial year prep for not only myself but my Accountant too. The accuracy of the reports and tracking also allows me to sleep at night, knowing everything is correct for the ATO.
SMSF & Trust Reporting With Koinly
Koinly links to a specific account and email address when you sign up, which means you can only have 1 linked account to your primary email. This does present an issue for investors that have multiple investing entities.
For example if you have crypto in your personal name, Family Trust and SMSF you would need to sign up with 3 different email addresses. You would need to do this because each one is a separate entity and would need its own tax reporting.
In this case you would have to go through the process of integrating each investing entity you have with Koinly with their appropriate crypto wallet or exchanges. I hope that in the future Koinly develops the functionality so that you can do this all under one email address and then select entities within their platform.
So to confirm it is possible to get tax reports for your Trust and SMSF with Koinly. Just make sure you link the correct exchanges and wallets to the correct investing entity. This will then ensure you are getting accurate information for your tax reporting.
What Is The Koinly Pricing Structure?
I love the fact that Koinly Australia has a free crypto tracking feature with no fees to sign up to the Koinly App. Koinly has 5 different options in their pricing plan and is based on a freemium model.
The free offering from the Koinly app is excellent, if you are wanting to just track all your crypto holdings but not receive any reporting functionality. You could in theory use the information the free plan gives you to do it yourself. This would work if you have a couple of holdings.
However, if you had any more than a few holdings or were concerned about the accuracy of the report it would be a much better option getting a paid plan.
On the Koinly app free plan there is absolutely no cost to the user and you are still able to integrate with your accountant. The main drawback with the free plan though is that you don’t get any reporting functionality.
This means you would be able to track all your crypto performance and see a snapshot of the gains/losses. But you wouldn’t be able to use the data from the dashboard to complete your tax return correctly.
The only caveat to this would be if you had very few holdings and made very few transactions throughout the year, then this could be more than sufficient.
You essentially get all the other functionality that you do with the other plans, however you are missing the key value that Koinly adds and that is country specific compliant tax reporting.
The Koinly app Newbie plan costs $49USD per year and gives the user complete access to all the Koinly app features, except email support. I like how Koinly have made their lowest paid plan have all but one feature of the platform.
The differentiating factors for the Koinly app pricing plans are how many transactions you make per year. It makes sense that the more transactions you make the more data needs to be assessed and bigger reports made.
For the Koinly Newbie plan the upper limit on your annual tracked transactions is 100. To give you some perspective on that, if you were just buying Bitcoin weekly on Coinspot and not earning interest in kind this plan would be great. You wouldn’t get near the limit using a weekly investing strategy.
However, if you were staking or lending 2 cryptocurrencies and earning weekly interest with Celsius you would max out this plan. It is called a Newbie plan for a reason as Koinly expects people using this plan to not be very active with their crypto activity.
The Koinly app Hodler plan costs $99USD per year and also gives users complete access to all the Koinly app features except email support. The Koinly app Hodler plan has a max limit of 1,000 transactions before you require a higher plan.
The Hodler plan gives users access to all the tax reporting functionality such as Capital gains tax reports, expenses reports, income reports and many more. 1,000 transactions in perspective would be the equivalent of lending or staking about 20 cryptocurrencies for 12 months.
In most cases this would be the most suitable pricing plan as 1,000 transactions is a lot if you are holding your crypto. You would need to be quite actively trading and staking/lending crypto to go over this plan.
The Koinly Trader plan costs $179USD per year and as the name suggests is aimed at people that have a lot of crypto trading activity. This pricing plan maxes out at 3,000 crypto transactions per year, which is a lot of transactions.
The Koinly app Trader plan includes all of the app features, with the added bonus of email support in this pricing plan. I do find it a little bit strange that there isn’t email support for the other plans. Although their help centre and intercom functionality is extremely helpful for any issues.
3,000 crypto transactions is big volume within a 12 month period, so it makes sense that this is priced a lot higher than the Hodler plan. If I was making that many crypto transactions in a year I would pay that much to ensure all my tax reporting data was correct come tax time. It would be a small price to pay to avoid a massive headache later with the ATO.
The Koinly Pro plan costs $279USD per year and is targeted at professional traders hitting transactions of over 10,000 per year. This plan actually goes all the way up to 100,000 annual transactions at which time you would be given a custom plan.
This plan includes all of the Koinly app functionality including email customer support. While this plan may seem quite expensive to more passive, if you are putting through over 10,000 transactions you are likely doing this as a business. Therefore it would be a small amount to pay for automated tax reporting and crypto tracking.
Koinly Review FAQ’s
Hopefully you are enjoying this Koinly review so far. In case you had further questions regarding Koinly Australia and what the platform is about I have compiled a list of FAQs below.
Does Koinly Work in Australia?
Yes, it has over 350 global exchanges including some of the Australian favourites, Swyftx, Independent Reserve and Coinspot. It also provides ATO compliant tax reports and integration for your accountant.
Does Koinly Report To ATO?
The tax reports that Koinly provides meet all the requirements for you or your accountant to use for lodging your return with the ATO.
How Do You Avoid Tax On Cryptocurrency In Australia?
Tax avoidance is illegal. However, tax minimisation is legal but is something you should seek professional advice on.
Is Koinly Tax Report Free?
No, unfortunately if you wish to utilise the tax reporting function you must be on a paid plan. You are able to use Koinly for free though for everything else except tax reporting.
Is My Koinly Plan Tax Deductable?
Depending on your specific circumstances you may very well be able to claim your Koinly plan as a tax deduction. It is best to speak with your accountant about this though.
How Secure Is Koinly?
Koinly app doesn’t require any private keys or access to your funds on your exchanges. All data is encrypted with 256 bit encryption before being stored on their database.
Which Crypto does Koinly Support?
Koinly will automatically integrate all crypto listed on your exchanges, wallets, blockchains or crypto services. It is able to track the price of any crypto listed on CoinMarketCap or CoinGecko. If your holdings aren’t listed there, then you will need to manually enter this into the platform.
Pros & Cons of Koinly Australia
- Country specific, compliant tax reports
- Automated tracking of crypto holdings
- Easy & fast integration to exchanges, wallets, blockchains & services includes DeFi
- Clearly Differentiates Crypto income & capital gains
- Integration with Accountant
- Great value for money and what it provides
- Must use a paid plan for any tax report
- Require multiple accounts for different investing entities
- Staking or Lending crypto with weekly rewards increases transactions very quickly
- Not a crypto exchange, so you can’t trade crypto
Alternatives To Koinly
TokenTax is a premium automated crypto tax reporting platform, while its base level plan is $65USD it covers 500 transactions which is good value for money. However, it only covers tax liabilities for Coinbase and Coinbase Pro exchanges. To get functionality on all exchanges and wallets you would need the next tier up which is $199USD per year.
CryptoTaxCalculator is another automated crypto tax reporting platform that integrates with exchanges and wallets globally. They offer a competitive solution for investors with less than 100 transactions costing only $49AUD. However there is a massive jump up to $250AUD on their next tiered plan. For this reason I prefer the Koinly pricing structure as it provides more flexibility.
Is Koinly Australia Worth It?
If you have read this far down in my Koinly Australia review then I think you can guess my answer here. Koinly is most definitely worth it for investors that want to reliably track their crypto portfolio and review their tax liability automatically.
There is always an opportunity cost involved in anything we do. Koinly is one of those services that highlights this perfectly. In most cases you could probably complete your crypto tax return with a few holdings. But at what cost?
Therefore it is important to weigh up these opportunity costs when assessing if you need to use an automated crypto tax reporting tool like Koinly.
In my opinion Koinly is absolutely worth it. You are paying for automated crypto tax reporting that saves you time, saves you money and significantly reduces the likelihood of errors occurring when filing your taxes. That last point by itself is enough for me to know Koinly is worth it, as I have heard nightmare stories of people fighting the ATO for years.
If you want to track your crypto tax liability and are unsure if you want tax reports then it is an absolute no brainer to sign up for Koinly and automate the tracking process. There is literally no cost to you at all, unless you require tax reports.
In my experience Koinly Australia is definitely worth it. I was able to save countless hours of portfolio tracking through using koinly. But also saved hours of work for my accountant too, which therefore saved me money. Not to mention the ability to write it off as a tax deduction and reduce the chance of error occurring.
If you like automation that saves you time, reduces likelihood of errors and can potentially save you money and effort. Then I think you will love Koinly. With a great free product offering, Koinly is great for anyone looking at tracking their entire crypto portfolio. With only a small price for tax reporting Koinly is a cost effective way of reviewing your crypto tax liabilities.
The API integration with multiple exchanges, wallets, blockchains and crypto services plus automated investment updates make Koinly a great platform. Koinly has saved me hours of reviewing my entire portfolio and given a full picture of my tax liability. This enabled me to take advantage of some tax opportunities.
If you have a simple crypto portfolio and don’t require tax reporting you won’t get to experience the real value Koinly has to offer, but it’s worth having a look anyway. But the benefit is massive for people with more holdings, trading activity or more complex portfolios. The time saving, accuracy of data and ease of implementation come tax time make it absolutely worth every dollar!
Sign Up Here
If after reading this Koinly review you want to make your life easier with automated crypto tax reporting then you can sign up here.