If you bought, sold, staked, swapped, or even just tested cryptocurrency in the past year, you may have crypto tax obligations in Australia that you did not realise.
The ATO is paying close attention to crypto activity – and even one or two trades could result in a capital gains tax (CGT) event. Whether you are a casual investor or deeply involved in DeFi, it is crucial to understand how crypto tax in Australia works before lodging your return.
Does the ATO Know About My Crypto?
If you bought, sold, staked, swapped, or even just tested cryptocurrency in the past year, you may have crypto tax obligations in Australia that you did not realise.
The ATO is paying close attention to crypto activity – and even one or two trades could result in a capital gains tax (CGT) event. Whether you are a casual investor or deeply involved in DeFi, it is crucial to understand how crypto tax in Australia works before lodging your return.
What Crypto Transactions Are Taxable?
The Australian Taxation Office (ATO) treats most crypto the same as shares or property. That means capital gains tax applies when you dispose of a crypto asset.
This includes:
✅ Selling crypto for AUD or another currency
✅ Swapping one crypto for another (e.g. ETH to BTC)
✅ Spending crypto on goods or services
✅ Gifting crypto to another person
✅ Converting a wrapped token
✅ Removing crypto from certain DeFi protocols
Swapping coins – even within the same wallet – is a disposal for tax purposes. Under crypto tax Australia guidelines, the disposal triggers CGT.
What If I Just Held or Transferred Crypto?
Good question. The following are not CGT events:
❌ Holding crypto in your wallet without selling
❌ Transferring crypto between wallets you control
However, if your crypto earned rewards, that changes things.
Is Staking or Farming Income Taxed?
Yes. If you earned tokens through:
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Staking
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Yield farming or liquidity mining
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Airdrops
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Lending
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Validator nodes
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Mining
…then those tokens are treated as ordinary income, not capital gains. The market value in AUD at the time you received them must be reported as income.
This applies whether you sell them or not. Crypto tax in Australia requires you to declare staking and DeFi rewards as income in your return.
Do I Qualify for the CGT Discount?
If you held a crypto asset for 12 months or more before disposing of it, you may be eligible for a 50% CGT discount (individuals only).
Sell or swap it earlier, and you will be taxed on the full capital gain.
What About Personal Use Exemption?
In rare cases, crypto can be treated as a personal use asset and exempt from CGT. But this only applies when:
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You held the asset for a short time, and
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You used it directly to buy something personal (not business-related), and
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The value is under $10,000
This exemption is hard to qualify for. In most cases, crypto is considered an investment and subject to capital gains tax in Australia.
What Should I Review Before Lodging?
The ATO is data-matching wallet and exchange activity. Before you lodge, make sure you:
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Review all transactions (trades, swaps, disposals)
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Confirm the AUD value at time of each event
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Check if any assets were held over 12 months (for the CGT discount)
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Identify any losses to offset gains
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Assess if anything qualifies as personal use (unlikely)
💡 Use a Tool to Make Crypto Tax Easier
Crypto tax can get messy…fast. That is why we recommend using a tool like Crypto Tax Calculator to calculate and track your crypto tax accurately.
This tool:
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Syncs with wallets and exchanges
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Calculates gains, losses, and income
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Helps separate CGT and income
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Lets you invite your accountant to collaborate
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Creates a single source of truth for crypto tax reporting
FAQs: Crypto Tax Australia
Is buying crypto taxable?
No. Buying is not taxable unless you earn tokens at receipt (e.g. via staking, airdrops, or mining).
Is swapping one crypto for another taxable?
Yes. Under crypto tax Australia rules, this is a CGT disposal-even if you do not convert to AUD.
Do I pay tax if I never converted my crypto to cash?
Yes. Tax is based on disposal or income events, not whether you withdrew money.
Need Help With Crypto Tax?
We would love to know – have you dabbled in crypto this year?
Whether it was a few swaps, some staking income, or a full DeFi setup – we can help you:
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Review your trading history
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Work out what is assessable and what is not
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Structure your holdings more efficiently
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Avoid ATO issues (or fix them if needed)
