Westpac customers in Australia can securely buy Bitcoin and crypto by making transfers to regulated digital currency exchanges such as Independent Reserve, one of Australia’s longest-running and most trusted cryptocurrency exchanges. This guide walks you through creating an account, depositing funds, and purchasing Bitcoin, along with Westpac’s policies on crypto transactions, and tax considerations.
How to buy Bitcoin and crypto with Westpac
Create your account
To buy Bitcoin and crypto with Westpac, start by creating an account on Independent Reserve.
You will need to provide a few documents and details, including:
- Personal details (full name, email address, date of birth)
- Proof of address (accepted documents include bank statements, utility bills (gas, water, rates) or government-issued documents (e.g., ATO, vehicle registration, etc.)
- Proof of identity (driver’s licence, passport, and a selfie)
This ensures compliance with Australian financial laws and enhances security for all users.
Deposit funds from Westpac
Westpac customers can fund their Independent Reserve account using multiple payment options, including:
- Credit/debit card: Instant using Visa or Mastercard.
- PayPal: Instant.
- EFT bank transfer: Free for deposits over $100.
- PayID: Instant and free for deposits over $100.
Buy Bitcoin
Once your funds are available, buying Bitcoin is quick and straightforward.
- Log in to your account.
- Navigate to the Trade section.
- Select Bitcoin from the list of available cryptocurrencies.
- Enter the AUD amount you want to purchase.
- Select Buy Bitcoin.
- Review transaction details and confirm your order.
Once the transaction is complete, your Bitcoin will be credited to your Independent Reserve wallet.
While the steps are the same for desktop and mobile, the desktop and mobile interfaces differ. Below is an example of the mobile app interface.
Westpac’s crypto policies
As of May 2023, Westpac began trialling blocks of suspicious transactions and deposits to exchanges it deems high-risk as part of the bank’s broader fraud prevention measures. While the policy does not provide clear guidance, you can read more about this on the Westpac website.
While generally considered crypto-friendly, Westpac has faced some controversy over its recent handling a blocked bank transfer of $50,000 to CoinJar.
Crypto tax obligations in Australia
According to the Australian Tax Office (ATO), cryptocurrency is considered an asset for capital gains tax (CGT) purposes.
Most of the time (for ordinary investors), the ATO treats buying and selling cryptocurrency like it treats buying and selling shares. That means a CGT event occurs every time you dispose of your cryptocurrency, which includes trading it for another cryptocurrency. If you profit from the sale or trade of a cryptocurrency, then some, or all, of the gain may be taxed.
The rules differ depending on whether you bought the cryptocurrency as an investment or acquired it to use in the same way as fiat money to pay for goods and services. If you’re carrying on a business in cryptocurrency, or you’re a professional trader, there are different rules again, and we suggest you speak to a qualified accountant.
Learn more about crypto tax obligations and tools.
Frequently asked questions
Are there any fees for buying crypto using bank transfers?
- Bank deposits are free on amounts of $100 and above. Deposits under $100 incur an $0.99 processing fee.
- Buying and selling crypto incurs a 0.5% fee.
- View the fee schedule for a list of all fees and charges.
Is there a deposit limit for bank transfers?
- Independent Reserve’s daily deposit limit is $40,000.
- For higher daily deposit limits, please contact customer support via the support screen. Our over-the-counter crypto trading desk is available for transactions above $50,000.
Can I withdraw AUD to my bank account?
- Yes, you can easily send AUD to your linked bank account.
Are there any limitations when it comes to using Westpac?
- Westpac may delay your first deposit by 1 to 2 business days.
- Osko and PayID deposits are typically instant. EFT transfers can take up to 2 business days to process.
