Crypto Tax in Australia: How the ATO Taxes Crypto

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You can pay tax on crypto in Australia, including when you swap it for another crypto asset rather than sell it for cash. The ATO says investors generally hold crypto as capital gains tax (CGT) assets, while staking rewards are ordinary income. Your tax treatment depends on how you acquire, hold and dispose of each asset.

How the ATO taxes crypto

The ATO says there are no special tax rules for crypto assets, and crypto is not money for tax purposes. Its definition covers digital representations of value that you can transfer, store or trade electronically, including NFTs.

For investors, the ATO generally treats crypto as a CGT asset. That includes crypto investments held by a self-managed super fund. A business trading crypto may need to treat it as trading stock or ordinary income instead.

Each crypto asset is a separate asset for tax, even when you keep several in the same wallet. Where you store it, on a platform or in your own hot or cold wallet, doesn't change that.

There's no separate crypto tax rate. For an investor, the tax on a net capital gain depends on your marginal rate. If you're unsure how your activities are treated, speak to a registered tax agent.

What counts as a CGT event

The ATO says disposing of crypto held as an investment can create a CGT event. You may make a capital gain or a capital loss, and you don't need to receive Australian dollars for it to count.

According to the ATO, a swap disposes of the original asset and acquires another. This matters if you keep exchanging assets without withdrawing cash: those swaps still need to be considered for CGT.

Stablecoins are no exception. The ATO lists USDC, a stablecoin, as a crypto asset, so swapping bitcoin for a stablecoin is a crypto to crypto swap. Read what a stablecoin is for more on how they work.

Working out a gain or loss

The ATO says you make a capital gain when your proceeds exceed your cost base. The basic calculation is proceeds minus cost base, with values expressed in Australian dollars. Have the records for each asset before calculating.

For a swap, the ATO says your capital proceeds are the AUD market value of the crypto you receive. If you can't work that out, use the AUD market value of the crypto you give up. Knowing how many tokens you got isn't enough; you need their dollar value on the day.

A made-up example

These round figures are made up to show the calculation. Assume you're an Australian resident for tax purposes, the asset qualifies for the discount and you have no capital losses to subtract.

You buy crypto for $4,000 and sell it for $10,000 after 14 months. Using $4,000 as the cost base, your capital gain is $6,000. Applying the 50% CGT discount leaves $3,000 to include in your net capital gain.

The $3,000 is not the tax bill. The tax you pay depends on your marginal rate. This example assumes a qualifying investment disposal; it doesn't establish the treatment of your own transactions.

The ATO's overall calculation is total capital gains, minus capital losses, minus any CGT discount. Its guide to working out and reporting CGT on crypto explains the process.

The 50% CGT discount

The ATO says an Australian resident for tax purposes can reduce a capital gain by 50% after owning the asset for at least 12 months. When counting that period, exclude both the acquisition day and the day of the CGT event.

Subtract capital losses before applying the discount. The order matters: the discount applies after losses have reduced the gains.

Different entities have different treatment. According to the ATO, complying super funds have a 33.33% discount, Australian trusts have a 50% discount and companies can't use the discount.

The ATO also says foreign or temporary residents can't use the full discount for gains made after 8 May 2012, although an apportioned discount may apply. Speak to a registered tax agent if your residency circumstances affect the calculation.

On its CGT discount page, updated 29 June 2026, the ATO says changes announced in the 2026 to 27 Federal Budget don't apply to Tax Time 2026.

Capital losses

The ATO says a capital loss can reduce capital gains. You can't deduct a net capital loss from your other income, so a crypto investment loss isn't a deduction against that income.

Losing crypto can also count. The ATO's page on loss or theft of crypto assets (last updated 22 June 2026) says you can claim a capital loss if crypto is lost or stolen and you can provide evidence that you owned it. A lost private key can't be recovered, so the ATO lists evidence such as the wallet address, the dates you acquired and lost the key, what the crypto cost and its value when the key was lost. If you get compensation, it reduces the loss. Speak to a registered tax agent about your own situation.

Staking rewards and airdrops

The ATO says the money value of extra tokens received as staking rewards is ordinary income when you receive them. Declare that value as other income. The tokens' cost base is their market value when received.

When you later sell or swap those tokens, that's a separate CGT calculation, using the value at receipt as the cost base. So keep a record of what each reward was worth on the day it arrived.

For airdrops, the ATO says market value is ordinary income if you receive the assets in return for goods or services.

Different treatment applies if you're not in a crypto trading business and didn't receive the airdrop as a reward for goods, services or another income-producing activity. The ATO says you don't include its market value in assessable income. Its cost base is its market value when received, generally nil if it has no or negligible value.

A CGT event may happen when you later deal with the airdropped asset. The ATO's staking rewards and airdrops page also refers to Draft Taxation Ruling TR 2026/D1 on airdrops.

The personal use asset exemption

The ATO says a crypto asset can be a personal use asset if kept or used mainly for personal use, such as buying items for personal use or consumption. The test applies at disposal.

A capital gain is exempt if the asset qualifies as a personal use asset and you acquired it for less than $10,000. Being below that amount alone isn't enough. Crypto held as an investment, in a profit-making scheme or in a business isn't a personal use asset.

The ATO says, except in rare situations, personal use treatment doesn't apply when you convert crypto to AUD or another crypto to buy things, use it for a gift card, load a prepaid debit card or pay through a payment gateway.

Capital losses on personal use assets are disregarded. If you're uncertain about the exemption, speak to a registered tax agent rather than assuming that spending crypto makes it personal use.

Reporting it

The ATO says individuals using myTax report through "Capital gains or losses". On the paper return, the relevant item is "18 Capital gains 2026". Companies, trusts and funds use the CGT schedule.

The ATO runs a crypto asset data-matching program. It matches tax returns against crypto transaction and account data from designated service providers. That data doesn't replace your own records, which are what you need to work out each gain or loss.

If your platform offers a transaction report, check it against your own records. For help with your own return, speak to a registered tax agent. For the legal side, read is crypto legal in Australia.

Records to keep

The ATO says to keep records for each asset, including:

• Transaction records: Receipts when you buy, transfer or dispose of crypto, the transaction date, what it was for and the other party. A wallet address is enough to identify the other party.
• Values and accounts: The AUD value at each transaction, exchange records, digital wallet records and keys.
• Related costs: Agent, accountant and legal costs, plus software costs for managing your tax.

The ATO suggests exporting your transaction history regularly, with a reminder at least every 3 months. Export the complete history before closing an account. If records are lost, the ATO suggests a blockchain explorer or the exchange's customer service to recreate them.

According to the ATO, keep records for 5 years from the latest of when you prepare or obtain them, when transactions are complete, or the year the CGT event happens. Records must be in English or translatable to English and in writing; electronic records are acceptable.

Frequently asked questions

Do you pay tax on crypto in Australia if you never cash out?

The ATO says swapping crypto held as an investment is a CGT event. Buying goods or services with it can also be a CGT event. Cashing out to Australian dollars isn't the only transaction that matters.

Is there a fixed crypto tax rate?

There isn't one rate for every crypto transaction. For investors, the tax payable on a net capital gain depends on your marginal rate. The ATO treats staking rewards as ordinary income when received.

Does holding crypto for 12 months make the gain tax free?

No. The ATO says eligible Australian resident investors can reduce a capital gain by 50%, after subtracting capital losses. Exclude the acquisition day and CGT event day when counting the 12 months.

Can a crypto capital loss reduce my other income?

The ATO says capital losses can reduce capital gains. You can't deduct a net capital loss from your other income, and losses on personal use assets are disregarded.

Are all airdrops taxed as income when received?

No. The ATO's treatment depends on the circumstances, including whether you received the airdrop for goods, services or another income-producing activity and whether you're in a crypto trading business. A later transaction may still create a CGT event.

What if I lose my private key or get scammed?

The ATO says you can claim a capital loss for lost or stolen crypto if you can show you owned it and can't get it back. Keep the evidence it lists. Read our crypto scams guide for where to report a scam.