The Australian Taxation Office is planning to issue capital gains tax guidance on cryptocurrency packaging contracts.

According to a Bloomberg report, Techub News reports that the Australian Taxation Office (ATO) announced on Monday that it plans to finalize a draft tax ruling in August regarding the capital gains tax assessment of cryptocurrency "wrapping" contracts, clarifying the tax treatment of such asset exchanges. "Wrapping" contracts are used to convert cryptocurrency assets into equivalent assets to be compatible with specific protocols. The guidance will explore the tax treatment when assets are sent to the contract and deemed abandoned, aiming to provide investors with clear tax guidance for such transaction scenarios.