Crypto Tax Australia 2026: CGT Rules Explained

The ATO treats cryptocurrency as property, not currency. This means it's subject to Capital Gains Tax (CGT) — the same rules that apply to shares, investment property, and other assets. Every time you dispose of crypto, you trigger a CGT event.

A disposal includes: selling crypto for AUD, trading one crypto for another (yes, swapping Bitcoin for Ethereum is a taxable event), using crypto to buy goods or services, gifting crypto, and converting to stablecoins. The only non-taxable event is transferring between your own wallets.

Your capital gain is the difference between what you received (sale price) and your cost base (what you paid, including exchange fees). If you sold for more than you paid, you have a capital gain. If less, a capital loss.

If you hold crypto for more than 12 months before selling, you get a 50% discount on the capital gain. This is the single biggest tax planning tool for crypto investors in Australia.

Example: You buy $10,000 of Bitcoin and sell for $20,000. The $10,000 gain is taxed at your full marginal rate if you held for under 12 months. At the 30% tax bracket, that's $3,000 in tax. But hold for over 12 months and only $5,000 is taxable — so you pay $1,500. That's a 50% tax saving just for being patient.

At the 45% bracket, the difference is even more dramatic: $4,500 vs $2,250. Our Crypto Tax Calculator shows you the exact impact for your situation.

The ATO requires you to keep records of every crypto transaction for at least 5 years. For each transaction, you need: the date, the amount in AUD at the time, what the transaction was for, and the other party (usually the exchange).

Most exchanges (CoinSpot, Swyftx, Binance, Coinbase) provide transaction history exports. Download these regularly — exchanges have shut down before and taken records with them. For DeFi transactions, you'll need to track wallet activity manually or use crypto tax software like Koinly, CoinLedger, or Syla.

The ATO has data-matching programs with Australian crypto exchanges and can see your transactions. Don't assume you won't get caught if you don't report.

If you sell crypto for less than you paid, you have a capital loss. Capital losses can only offset capital gains — not your salary or other income. But they can be carried forward indefinitely until you have gains to offset.

This means if you lost $5,000 on one coin but gained $10,000 on another in the same financial year, you only pay tax on the net $5,000 gain. If your losses exceed your gains, the excess carries forward to future years.

Note: you can't "wash sale" crypto in Australia to manufacture losses — if you sell at a loss and immediately buy back the same asset, the ATO may disregard the loss under the general anti-avoidance provisions.

Staking rewards: The ATO considers staking rewards as ordinary income at the time you receive them, valued in AUD at the market rate on that date. When you later sell the staked tokens, you also have a CGT event (with the cost base being the AUD value when you received them).

Airdrops: Free tokens from airdrops are generally income at the time received. If you didn't do anything to earn them, the cost base may be zero — meaning the entire sale proceeds are a capital gain.

Liquidity pools / DeFi: Adding tokens to a liquidity pool is a disposal (CGT event). Receiving LP tokens is an acquisition. Removing liquidity is another disposal. Every step can trigger tax, making DeFi particularly complex to track.

There's one exception: the personal use asset exemption. If you bought crypto with the genuine intention of using it to buy goods/services (not as an investment), and the original cost was under $10,000, any gain is exempt from CGT.

The ATO looks at your intention at the time of purchase and the time between buying and using. Buying Bitcoin and spending it at a shop the next week could qualify. Buying Bitcoin, holding it for 6 months while it appreciates, then spending it? That looks like an investment, and the ATO will treat it as one.

This exemption is narrow and heavily scrutinised. Don't rely on it for large amounts or habitual trading.