Calculating crypto tax in Australia requires tracking the cost base of every unit of cryptocurrency you own, across every purchase and at every exchange. When you sell, swap, or spend crypto, you calculate a gain or loss by matching the disposal against an acquisition. With potentially hundreds or thousands of transactions, crypto tax software is almost always the most practical approach.
The Core Calculation
For each crypto disposal, you calculate:
$$\text{Capital gain (or loss)} = \text{Proceeds (AUD)} - \text{Cost base (AUD)}$$
Proceeds: The AUD market value at the time of disposal (selling price, or the AUD value of what you received in a swap).
Cost base: The AUD amount you paid to acquire that specific unit of cryptocurrency, including any exchange fees at acquisition.
The challenge is that most investors buy cryptocurrency in multiple tranches at different prices. When you sell, you need a consistent method to determine which units you are selling and therefore what cost base applies.
Cost Base Methods — FIFO vs Specific Identification
The ATO does not mandate a specific cost base method for cryptocurrency, but it requires you to use a consistent, reasonable method. Two common approaches:
FIFO — First In, First Out
Under FIFO, the first units you purchased are assumed to be the first units you sell.
Example:
- January: Buy 1 BTC at $40,000
- March: Buy 1 BTC at $55,000
- September: Sell 1 BTC at $70,000
Under FIFO, the sold unit is the January BTC. Cost base = $40,000. Gain = $70,000 − $40,000 = $30,000.
Since the January BTC was held for more than 12 months, the 50% CGT discount applies → taxable gain = $15,000.
Specific Identification
You specifically identify which parcels of crypto you are selling. This allows you to optimise your tax position — for example, selling the highest-cost-base parcels to minimise gains, or choosing parcels held over 12 months to access the CGT discount.
The ATO accepts specific identification if you have adequate records to substantiate it. Crypto tax software can assist with this.
Other Methods
LIFO (Last In, First Out) and averaging methods are sometimes used but have less ATO guidance. FIFO and specific identification are the most commonly accepted approaches.
Step-by-Step: Calculating Your Annual Crypto Tax
Step 1 — Export All Transaction Data
Download your transaction history from every exchange and wallet you used during the financial year. Most exchanges allow CSV exports. If you use hardware wallets or DeFi protocols, you will need blockchain explorer records.
Step 2 — Categorise Each Transaction
For each transaction, determine whether it is:
- An acquisition (buying crypto with AUD, receiving staking rewards, airdrops)
- A disposal (selling for AUD, swapping crypto-to-crypto, spending, gifting)
- A non-event (transferring between your own wallets)
Step 3 — Convert to AUD
Every transaction must be valued in AUD at the time it occurred. Use the exchange rate from a reliable source — the ATO accepts exchange rates from reputable crypto exchanges or data providers.
Step 4 — Calculate Gains and Losses
For each disposal, match it against the appropriate acquisition(s) using your chosen cost base method. Determine:
- Gross gain or loss
- Whether the asset was held over 12 months (CGT discount available)
- Net discounted gain (after applying 50% discount where eligible)
Step 5 — Aggregate and Report
Sum all gains (discounted and non-discounted) and all losses. Apply losses to offset gains. The net result is reported in your tax return.
Crypto Tax Software — Australian Options
Given the complexity of tracking multiple transactions, most investors use dedicated crypto tax software:
| Software | Australian? | Key features |
|---|---|---|
| Koinly | ✅ ATO-compliant | Imports from 300+ exchanges, generates ATO tax reports |
| CryptoTaxCalculator | ✅ Australian-built | Excellent DeFi support, ATO format reports |
| CoinTracker | ✅ ATO-supported | Syncs with exchanges and wallets |
| Syla | ✅ Australian-built | Used by accountants, detailed audit trail |
These tools import your transaction data, apply cost base methods, and generate a capital gains report you (or your tax agent) can use to complete your return.
Reporting Crypto Tax in myTax
Crypto gains and losses are reported in the Capital gains section of your myTax return:
- CGT gains (discounted): Total discounted gains (after 50% reduction) — report in the “Gains eligible for discount” field
- CGT gains (non-discounted): Gains on assets held under 12 months — report separately
- Capital losses: Current year losses and prior year losses being applied
Ordinary income from staking, mining, or airdrops is reported as Other income in the income section — not in the capital gains section.
Related Articles
- Crypto Tax Australia — ATO Rules Explained
- Crypto to Crypto Swaps — Are They Taxable?
- CGT on Crypto
- Capital Gains Tax Explained
- Tax on Investments hub
- Taxes hub
Frequently Asked Questions
What if I don’t have complete transaction records? You are legally required to keep records of all crypto transactions. If records are missing, attempt to reconstruct them from exchange histories, blockchain explorers, and bank statements. A tax agent experienced in crypto can assist. Incomplete records do not eliminate your tax obligation — and the ATO may apply default assessments if records are inadequate.
Do I need to report crypto on my tax return if I made a loss? Yes. Capital losses should be reported — they carry forward to offset future capital gains and can save tax in future years. Omitting losses does not eliminate any tax risk and may mean you miss out on a carry-forward benefit.
Is staking income reported the same year I receive it? Yes. Staking rewards are ordinary income in the financial year you receive them, valued in AUD at that time. You then have a cost base equal to that value for CGT purposes when you later sell those tokens.
This article provides general tax information. Cryptocurrency tax is complex and the rules continue to evolve. For advice tailored to your situation, speak with a registered tax agent experienced in crypto. Find one through the Tax Practitioners Board register.