50% CGT discount applies
Capital Gain
$15,000.00
Tax on Gain
$2,250.00
Net Proceeds
$12,750.00
Effective CGT Rate
15.0%
ROI
150.0%
Capital Gains Breakdown
Crypto as a CGT Asset
The ATO treats cryptocurrency as a CGT asset, not as currency. When you dispose of crypto (sell, trade, gift, or use it to purchase goods), a CGT event occurs. The capital gain is the sale price minus your cost base (purchase price plus fees).
50% CGT Discount
If you hold cryptocurrency for at least 12 months before disposing, you are eligible for the 50% CGT discount. This means only half of your capital gain is included in your assessable income, significantly reducing your tax liability.
Capital Losses
Capital losses from crypto can only be offset against capital gains, not ordinary income. Unused capital losses can be carried forward to future income years.
Tax Rates
Your crypto capital gains are added to your other taxable income and taxed at your marginal tax rate. The more you earn, the higher percentage of tax you pay on your gains. This calculator accounts for your other income to determine the correct marginal rate.
ATO-Aligned: Uses 2025-26 CGT rules. Trading crypto as a business may be treated differently. Consult a tax professional for complex crypto portfolios.
How the ATO treats cryptocurrency for capital gains tax, income tax, and reporting
How does the ATO treat cryptocurrency?
The ATO treats cryptocurrency as property, not as currency. This means every time you sell, trade, swap, or use crypto to buy something, it is a capital gains tax (CGT) event. If you bought Bitcoin for A$5,000 and sold it for A$12,000, you have a capital gain of A$7,000. That gain gets added to your taxable income and taxed at your marginal tax rate. The ATO uses data matching to track crypto transactions across Australian exchanges.
When do you NOT pay tax on crypto?
You do not pay tax when you buy crypto with Australian dollars, transfer crypto between your own wallets, or hold crypto without selling. If you hold crypto as a personal use asset (for example, buying something directly with crypto you acquired for under A$10,000), it may also be exempt. However, crypto held as an investment is never a personal use asset, even if the amount is small.
Does the 50% CGT discount apply to crypto?
Yes. If you hold cryptocurrency for more than 12 months before selling, you get the 50% CGT discount just like shares or property. For example, if you bought Ethereum for A$3,000, held it for 14 months, and sold it for A$8,000, your gain is A$5,000. After the 50% discount, only A$2,500 is added to your taxable income. This makes a big difference, especially if you are in a higher tax bracket.
How is crypto-to-crypto trading taxed?
Swapping one crypto for another is a CGT event on both sides. If you trade Bitcoin worth A$10,000 for Ethereum, you are treated as selling Bitcoin for A$10,000. You calculate the gain or loss based on what you originally paid for the Bitcoin. The Ethereum you receive has a cost base of A$10,000. Every swap, even between stablecoins, triggers a CGT event. This is why accurate record-keeping is essential.
Is crypto mining or staking taxable?
Yes. If you mine or stake crypto as a hobby, the coins you receive are not taxed when you get them, but you pay CGT when you sell them (with a cost base of zero or the market value at the time of receipt). If mining is a business, the value of coins you receive is ordinary income at the time you receive them, and you also pay CGT when you sell. Staking rewards are generally treated as ordinary income when received.
What records do you need to keep for crypto?
You must keep records of every transaction for at least five years. For each trade, record the date, the amount in Australian dollars, the purpose of the transaction, and the other party (such as the exchange). Keep records of wallet addresses, exchange statements, and receipts. Many people use crypto tax software to automatically track their transactions and calculate gains, which saves a lot of time.
Can you offset crypto losses?
Yes. If you sell crypto at a loss, you can use that loss to reduce capital gains from other crypto or any other CGT asset (like shares or property). You cannot use capital losses to reduce your salary or wage income. Unused losses carry forward to future years. For example, if you lost A$4,000 on one coin but gained A$6,000 on another, you only pay CGT on the net A$2,000 gain.
How do DeFi and NFTs get taxed?
DeFi transactions like liquidity pool deposits, yield farming, and wrapping tokens are all CGT events. Each time you move crypto into or out of a DeFi protocol, the ATO treats it as a disposal. NFTs are treated the same as other crypto assets — buying and selling them triggers CGT. If you create and sell NFTs as a business, the proceeds are ordinary income. The rules are complex, so consider professional advice for large DeFi portfolios.
ATO-Aligned: Based on 2024-25 ATO rates and thresholds. For personal advice, speak to a qualified tax agent.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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