How is cryptocurrency taxed in Australia?

Cryptocurrency is treated as a CGT asset by the ATO. Every disposal — selling, swapping, gifting, or spending crypto — is a CGT event. If you hold for 12+ months, you get a 50% CGT discount. The net capital gain is added to your assessable income and taxed at your marginal rate (0%–45% for FY 2025-26). Capital losses can only offset capital gains, not other income.

Is there a wash sale rule for crypto in Australia?

No. Unlike the US and UK, Australia has no wash sale rule for any asset class including cryptocurrency. You can sell crypto to crystallise a capital loss and immediately rebuy the same asset. This is a legitimate tax-loss harvesting strategy that can reduce your CGT liability.

How are crypto staking rewards and airdrops taxed?

Staking rewards and airdrops are treated as assessable INCOME (not capital gains) at the AUD market value when you receive them. They are taxed at your marginal rate. When you later dispose of the staking rewards or airdrop tokens, you have a separate CGT event — the cost base is the AUD value at the time of receipt.

What is the personal use exemption for crypto?

If you acquired crypto for less than $10,000 and used it for personal consumption (e.g., buying goods or services), it may qualify as a personal use asset and be exempt from CGT. This does NOT apply if you held the crypto as an investment, for trading, or acquired it through mining/staking. The ATO scrutinises personal use claims closely.

Are crypto-to-crypto swaps taxable in Australia?

Yes. Swapping one cryptocurrency for another (e.g., BTC to ETH) is a CGT event. You must calculate the capital gain or loss based on the AUD market value at the time of the swap. The new crypto's cost base is its AUD value at the time of acquisition (the swap). This applies to all crypto-to-crypto trades, DeFi swaps, and token migrations.

Crypto Tax Calculator Australia — FY 2025-26

Calculate CGT on crypto disposals, estimate portfolio tax liability, and explore tax-loss harvesting strategies. ATO rules for digital assets.

Crypto is a CGT asset in Australia. Every sell, swap, or spend is a taxable event. Hold 12+ months for the 50% CGT discount. No wash sale rule — you can sell and rebuy immediately.

Purchase price

Total cost to acquire the crypto (AUD)

Sale price

Proceeds from selling/swapping (AUD)

Held 12+ months?

50% discount applies to assets held over 12 months

Transaction fees

Exchange fees, gas fees — added to cost base

Other taxable income

Your other income — determines marginal tax rate

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How to Use This Calculator

Tab "Crypto CGT"

Enter the purchase price and sale price of your crypto disposal. Select whether you held for 12+ months (for the 50% CGT discount). Under "More options," add transaction fees (included in cost base) and your other taxable income to determine your marginal rate. The calculator shows your capital gain/loss, CGT discount eligibility, net capital gain, estimated CGT payable, and personal use exemption check.

Tab "Portfolio Tax"

For a full financial year summary, enter your total gains, total losses, short-term gains (held < 12m), and long-term gains (held 12m+). Under "More options," add staking income and airdrop income — these are taxed as ordinary income, NOT capital gains. See your net CGT position, income tax on staking/airdrops, total tax liability, and any losses carried forward.

Tab "Tax Strategies"

Enter your unrealised gains and unrealised losses to explore strategies. See how much you could save through tax-loss harvesting (no wash sale rule in Australia!), the benefit of holding 12+ months for the CGT discount, and timing strategies for maximising after-tax returns.

The Formulas

Cost base:
Cost base = Purchase price + Transaction fees (exchange, gas, etc.)

Capital gain/loss:
Capital gain = Sale price - Cost base

50% CGT discount (held 12+ months):
Net capital gain = Capital gain × 50%

CGT payable:
CGT = Net capital gain × Marginal tax rate
(Net gain is added to your other income to determine the marginal rate)

Staking/airdrop income:
Tax = AUD value at time of receipt × Marginal rate
(Taxed as ordinary income — NOT CGT)

FY 2025-26 tax brackets (Stage 3):
$0 - $18,200: 0%
$18,201 - $45,000: 16%
$45,001 - $135,000: 30%
$135,001 - $190,000: 37%
$190,001+: 45%

Personal use exemption:
Acquisition cost < $10,000 AND used for personal consumption = exempt from CGT

Capital losses can only offset capital gains (not salary or other income). Unused losses carry forward indefinitely. Losses are applied first against short-term gains, then against long-term gains before the 50% discount.

Example

Alex — Software Developer, sold Bitcoin held for 18 months

Bought 0.5 BTC for $5,000. Exchange fees $50. Sold for $12,000. Other taxable income: $80,000. Also received $2,000 in ETH staking rewards.

Cost base$5,050 ($5,000 + $50 fees)

Capital gain$6,950

50% CGT discount (held 18m)Yes — net gain $3,475

CGT at 30% marginal rate$1,043

Staking income tax (30%)$600

Alex pays $1,043 in CGT on the Bitcoin sale (after the 50% discount) plus $600 income tax on staking rewards. Total crypto tax: $1,643. Without the CGT discount (if held under 12 months), the CGT alone would have been $2,085 — holding 12+ months saved Alex $1,042.

ATO Crypto Tax Rules — Key Points

Event	Tax Treatment
Sell crypto for AUD	CGT event — gain/loss calculated
Swap crypto-to-crypto	CGT event on each swap
Spend crypto on goods/services	CGT event (unless personal use exemption)
Gift crypto	CGT event at market value
Receive staking rewards	Assessable INCOME at receipt value
Receive airdrop	Assessable INCOME at receipt value
Mining rewards	Assessable INCOME (if business) or CGT (if hobby)
Buy crypto with AUD	Not a taxable event
Transfer between own wallets	Not a taxable event
Hold 12+ months	50% CGT discount on gains
Wash sale	No restriction in Australia
Personal use (< $10K)	Exempt from CGT

Frequently Asked Questions

Does the ATO know about my crypto?▼

Yes. The ATO has data-matching programs with Australian cryptocurrency exchanges. They receive transaction data from exchanges and can identify taxpayers who have bought, sold, or transferred crypto. The ATO has sent warning letters to hundreds of thousands of crypto holders who may not have reported correctly. All crypto transactions must be reported in your tax return.

Can I use tax-loss harvesting with crypto in Australia?▼

Yes, and it is especially powerful because Australia has no wash sale rule. You can sell crypto at a loss to crystallise the capital loss, and immediately rebuy the same asset. The loss offsets your capital gains, reducing your tax. This is fully legal and a common strategy at financial year-end. Just ensure you keep records of all transactions.

How are DeFi activities taxed?▼

DeFi activities follow the same rules: providing liquidity, swapping tokens, yield farming, and bridging between chains can all be CGT events. Rewards from liquidity mining or yield farming are typically assessable income at the AUD value when received. The cost base of LP tokens is the value of tokens deposited. Wrapping/unwrapping tokens may also be CGT events depending on the mechanism.

What records do I need to keep?▼

You must keep records of: the date and time of each transaction, the amount in AUD at the time, what the transaction was for, the other party (if known), exchange records and wallet addresses, and any agent or exchange fees. Records must be kept for 5 years after you lodge the relevant tax return. Use a crypto tax tool or spreadsheet to track all transactions — manual tracking becomes impractical with frequent trading.

Is the personal use exemption easy to claim?▼

The personal use exemption is narrow and the ATO scrutinises it closely. It only applies if: (1) you acquired the crypto for less than $10,000, (2) you used it to buy personal goods or services (not to trade or invest), and (3) you didn't hold it for an extended period before use. If you bought crypto as an investment and later spent it, the exemption does not apply. The ATO's view is that most crypto holdings are investment assets, not personal use assets.

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