The ATO treats cryptocurrency as a CGT asset, not as currency or money. This means that most crypto transactions — including selling, trading one crypto for another, and using crypto to buy goods or services — trigger a CGT event. The 50% discount applies if you held the crypto for more than 12 months.
What the ATO Says About Crypto
Under ATO guidance, cryptocurrency is treated as property for tax purposes. When you dispose of crypto, you calculate the capital gain or loss in Australian dollars (AUD) at the time of each transaction.
The ATO has stated it will use data matching with Australian crypto exchanges to identify taxpayers who have not declared crypto gains. Australian exchanges are required to report user data to the ATO.
What Counts as a Disposal (CGT Event)?
| Transaction | CGT Event? |
|---|---|
| Selling crypto for AUD | ✅ Yes |
| Trading crypto for another crypto (e.g., BTC → ETH) | ✅ Yes |
| Using crypto to buy goods or services | ✅ Yes |
| Receiving crypto as payment for work | ✅ Ordinary income + future CGT on disposal |
| Mining crypto (hobby) | ✅ Ordinary income at market value when received |
| Staking rewards received | ✅ Ordinary income at market value when received |
| Transferring crypto between your own wallets | ❌ No |
| Buying crypto with AUD | ❌ No |
How to Calculate CGT on Crypto
Cost base:
- AUD value of the crypto at the time of acquisition
- Exchange fees paid on acquisition
Capital proceeds:
- AUD value of crypto at the time of disposal (or the AUD value received)
- Less exchange fees paid on disposal
Capital gain = Proceeds − Cost base
If held for more than 12 months, apply the 50% discount.
Example: Selling BTC for AUD
| Item | Amount |
|---|---|
| 0.5 BTC purchased (AUD value at time) | $15,000 |
| Exchange fee on purchase | $30 |
| Cost base | $15,030 |
| 0.5 BTC sold (AUD value at time) | $28,000 |
| Exchange fee on sale | $50 |
| Capital proceeds | $27,950 |
| Capital gain | $12,920 |
| 50% discount (held 14 months) | ($6,460) |
| Taxable capital gain | $6,460 |
Example: Trading ETH for SOL
When you trade one cryptocurrency for another, the disposal of the first crypto is a CGT event. You must:
- Calculate the AUD value of the crypto you gave away at the time of the trade (proceeds)
- Subtract your cost base
- Calculate the gain or loss
NFTs and DeFi
The ATO treats NFTs (non-fungible tokens) as CGT assets. Selling an NFT triggers CGT. DeFi transactions (liquidity pools, yield farming, token swaps) are complex — each swap may be a disposal. The ATO has not issued comprehensive guidance on all DeFi scenarios, and a tax professional’s advice is recommended for active DeFi users.
The “Personal Use Asset” Exception
If you acquired crypto to personally use and enjoy it (e.g., to buy a coffee) — not as an investment — and you spent it within a short time of acquiring it, it may be treated as a personal use asset. The threshold for personal use assets is $10,000. However, the ATO views most crypto held over time as an investment asset, not a personal use asset.
Record-Keeping for Crypto
For each transaction you must record:
- Date of the transaction
- AUD value at the time of the transaction (use a reputable exchange rate source)
- Type of transaction
- Amount of crypto involved
- Exchange fees
Crypto tax software (e.g., Koinly, CoinTracker, CryptoTaxCalculator) can import transaction histories from exchanges and wallets to automate this process.
Related Articles
- CGT Record-Keeping Requirements
- The 50% CGT Discount
- How to Calculate Capital Gains Tax
- Capital Gains Tax Australia hub
Frequently Asked Questions
Do I pay tax on crypto in Australia? Yes. The ATO treats crypto as a CGT asset. Selling, trading, or spending crypto is a taxable event. You must calculate and report any capital gain or loss in your tax return.
Is crypto-to-crypto trading taxable in Australia? Yes. Every time you trade one cryptocurrency for another, you are disposing of the first crypto. This is a CGT event and you must calculate the AUD gain or loss at the time of the trade.
Do I pay tax on crypto if I don’t cash out to AUD? Yes. Even if you never convert to AUD, trading crypto-to-crypto, using crypto to buy goods, or receiving crypto as payment are all taxable events in Australia.
This article provides general tax information for FY2025–26. For advice tailored to your situation, speak with a registered tax agent or accountant. Find one through the Tax Practitioners Board register.