How is crypto taxed in Australia?

Crypto taxes in Australia are mainly handled through capital gains tax. When you dispose of crypto you hold as an investment, the ATO expects you to work out a gain or loss in Australian dollars and report it on your tax return. Holding crypto, or moving it between your own wallets, is not a disposal.

Is crypto-to-crypto taxable in Australia?

Yes. The ATO lists selling crypto, gifting it, converting it to cash, spending it on goods or services, and trading or swapping one crypto for another as CGT events. Each crypto asset is a separate CGT asset, so swapping bitcoin for ether means you have disposed of the bitcoin. You need to convert the value into Australian dollars at the time of each transaction.

Some crypto arrives as income rather than through a purchase. The ATO says established tokens received from staking rewards or airdrops are reported as other income, using their Australian dollar value. If you later dispose of them, that is a separate CGT event. Our guide on whether crypto staking is taxable explains the general idea.

What is the crypto capital gains discount in Australia?

If you are an Australian resident individual and you hold a crypto asset for at least 12 months before disposing of it, you can reduce your capital gain by 50%. The ATO applies the discount after subtracting any capital losses, so you are taxed on half of what remains.

Capital losses can reduce capital gains in the same year or be carried forward to future years. They cannot be deducted from your salary or other income.

When is crypto a personal use asset?

The ATO allows a narrow exemption. A capital gain is ignored if the crypto is a personal use asset and you acquired it for less than $10,000. The ATO looks at how the crypto was mainly kept and used at the time you disposed of it.

Buying crypto and spending it soon after on personal items points toward personal use. Holding it for a while, or using only a small share for purchases, points away from it. Crypto held as an investment, in a profit-making scheme or in a business does not qualify. Converting crypto into dollars or gift cards before spending usually rules it out too. Losses on personal use assets are disregarded.

What is the crypto tax rate in Australia?

There is no separate crypto rate. If you have a net capital gain, the ATO taxes it at your marginal income tax rate, along with your other income. The ATO also runs a crypto data-matching program covering the 2014-15 to 2025-26 income years, so transactions on exchanges are not invisible to it. Keep records of dates, Australian dollar values and the purpose of each transaction. For other countries, see crypto tax around the world.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.