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Taxation of cryptocurrency in Australia

5 mins
Tax
Table of Contents

Key takeaways #

  • The ATO treats cryptocurrency as property, so disposing of it triggers capital gains tax (CGT).
  • Crypto-to-crypto trades are taxable events — swapping one coin for another counts as selling.
  • Holding for more than 12 months qualifies you for the 50% CGT discount; unrealised gains aren’t taxed.
  • Keep a record of every transaction. Crypto tax software and a registered tax agent will save you a lot of pain.

In Australia, cryptocurrency is taxed as property: every time you sell, swap or spend it, capital gains tax (CGT) applies. Tax time catches a lot of crypto holders off guard, so this guide sets out how the Australian Taxation Office (ATO) treats cryptocurrency — what counts as a taxable event, how the 50% CGT discount works, and what records to keep — so you can get your books in order and have an informed conversation with your accountant or registered tax agent.

How the ATO classifies cryptocurrency #

The Australian Government treats cryptocurrency as a property asset, not a currency. That means every disposal of a crypto asset is subject to Capital Gains Tax. A capital gain is added to your taxable income and taxed at your marginal rate. A capital loss can be carried forward to offset future capital gains, but it cannot be offset against other income such as salary.

The good news: if you hold for longer than 12 months you are entitled to the 50% CGT discount, and you don’t pay anything on unrealised gains. Crypto only becomes taxable when you dispose of it.

Crypto-to-crypto trades are taxable #

A common misconception is that swapping one coin for another (say, Ethereum for Bitcoin) isn’t taxable because no fiat was involved. The ATO’s view is clear: each swap is a disposal. Trading 1 ETH for BTC is treated as selling 1 ETH and buying BTC at the same moment. You’ll pay tax on any gain in the ETH, and you’ll only be taxed on the BTC when you later dispose of it.

Spending crypto on goods or services is also a disposal. So is paying crypto-to-crypto for anything.

What records you need to keep #

For every cryptocurrency transaction, record:

  • The date of the transaction
  • The value in AUD at the time of the transaction (from a reputable exchange)
  • What was bought or sold, and the other party (a wallet address is sufficient)

A taxable event occurs on each disposal. Most accountants calculate gains using the first-in-first-out (FIFO) method unless another method is justified. Doing this by hand is tedious, so most people use crypto tax software that connects to their Australian exchange and wallets, imports every trade via API or CSV, and produces a CGT report your accountant can use directly. See our crypto resources list for options.

Personal use assets #

A narrow exemption exists for ‘personal use assets’ — crypto you purchased to personally use or enjoy, held for less than 12 months. In practice this is very hard to claim: if you’re buying crypto as an investment or trade it regularly, the ATO is unlikely to accept that it was for personal use. Buying a coffee with crypto at the end of the financial year won’t make it exempt.

Mining and staking income #

If you mine or stake crypto as a business, the crypto you earn is assessable income at the time you receive it, valued in AUD. Business operators may also be able to claim deductions for equipment and electricity, and account for trading stock. If you’re a hobbyist, the ATO’s treatment depends on scale and intent — another reason to get professional advice. Staking rewards are treated similarly as income when received, with CGT applying on any later disposal.

Getting help #

  • Talk to a registered tax agent who understands cryptocurrency. The fee is generally tax deductible and typically pays for itself.
  • If your situation is unusual, the ATO offers private rulings — binding advice on how tax law applies to your specific circumstances.
  • The ATO publishes dedicated guidance on crypto asset taxes and receives data from Australian exchanges through the data-matching program, so assume every trade is visible.

Keep accurate records from day one. The blockchain never forgets — make sure your spreadsheet doesn’t either.

Frequently asked questions #

Do I pay tax on crypto I haven’t sold? No. Unrealised gains aren’t taxed in Australia. CGT only applies when you dispose of crypto — selling, swapping or spending it. Simply holding, or transferring between your own wallets, isn’t a taxable event.

What if I made a loss on my crypto? A capital loss can offset other capital gains, reducing your overall CGT bill, and unused losses can be carried forward to future years. It can’t be deducted from your salary or other income.

Do I pay tax when I move crypto between my own wallets? No. Transferring between wallets or exchanges you control isn’t a disposal. Keep records of these transfers anyway so your accountant can see the funds were never sold.

How does the ATO know about my crypto? The ATO runs a data-matching program with Australian exchanges and treats crypto held through overseas platforms and self-custody wallets as equally visible. The safe assumption is that every trade is on the record.

This guide is general information only and is not financial or tax advice. Tax outcomes depend on your personal circumstances — confirm your position with a registered tax agent.