Crypto Tax Australia: ATO CGT Guide

How the ATO taxes crypto in Australia: CGT events on disposal, the 50% CGT discount for assets held over 12 months, the narrow personal-use asset exemption, and income vs capital. Coinfig Australia support is coming soon.

Last reviewed: 2026-06-01 · Reviewed by Johan Pretorius, Registered Tax Practitioner

Overview

In Australia, the Australian Taxation Office (ATO) treats crypto assets as property and, for most investors, as CGT assets. Disposing of crypto — selling, swapping, gifting or spending it — is a CGT event. Crypto received as income (staking rewards, some airdrops, payment for services, or business trading) is instead ordinary income, assessed at market value in Australian dollars when received.

Coinfig automation for Australia is coming soon — join the waitlist for launch updates. This guide is general information, not tax advice; confirm the current position with the ATO or a registered tax agent.

Capital Gains Tax

Each disposal is a CGT event. The capital gain is broadly the AUD capital proceeds less the cost base (acquisition cost plus certain incidental costs). Net capital gains are added to assessable income and taxed at your marginal rate. Capital losses can offset capital gains and be carried forward.

The 50% CGT discount

Individuals (and certain trusts) who hold a CGT asset for more than 12 months before disposal can generally apply the 50% CGT discount, halving the taxable capital gain. Crypto held 12 months or less does not qualify — the full gain is assessed. This holding-period rule is specific to Australia; do not confuse it with the South African position, where holding period alone is not decisive.

Crypto-to-crypto and spending

Swapping one crypto for another is a disposal of the first asset and a CGT event, valued in AUD. Spending crypto is likewise a disposal.

Personal-use asset exemption

A narrow exemption exists for crypto that is genuinely a personal-use asset — acquired and used to buy goods or services for personal consumption, where the cost is below the personal-use threshold and the crypto is not held as an investment. The ATO interprets this narrowly: holding for investment, profit-making or as part of a business disqualifies it. Most investors will not qualify, so do not assume it applies.

Income vs capital

If you are carrying on a business of trading crypto, profits are ordinary income (and crypto may be trading stock), not capital gains, and the 50% discount does not apply. Staking rewards and many airdrops are ordinary income at market value on receipt, which then sets the cost base for a later CGT event.

Filing

Report capital gains and crypto income in your annual individual tax return (the ATO provides specific crypto labels). Keep records of dates, AUD values, cost base and the nature of each transaction. The ATO receives data-matching information from Australian exchanges, so reconcile carefully.

Last reviewed

Australian thresholds and ATO guidance change. Confirm the current discount rules, personal-use threshold and reporting labels with the ATO before filing. This is general information, not tax advice.

Tax treatment at a glance

Transaction	Event	Treatment
Selling crypto for Australian dollars	CGT event	Capital gain = capital proceeds less cost base. Held over 12 months as an investor: 50% CGT discount may apply. Held 12 months or less: full gain assessed.
Crypto-to-crypto trade	CGT event	Disposal of the first asset at AUD market value; a CGT event even though no AUD is received.
Spending crypto on goods or services	CGT event	A disposal at market value; gain or loss based on cost base. May be exempt only if a genuine personal-use asset under the threshold.
Holding crypto over 12 months (investor)	Eligibility for discount	Individuals and certain trusts can generally apply the 50% CGT discount on the eventual gain.
Staking rewards	Ordinary income	Assessable as ordinary income at AUD market value on receipt; that value sets the cost base for a later CGT event.
Trading crypto as a business	Ordinary income	Profits are ordinary income (crypto may be trading stock); the 50% CGT discount does not apply.
Transferring between own wallets	No CGT event	Not a disposal; cost base continues.

Forms and filing

Report capital gains and crypto income in your annual individual tax return using the ATO crypto labels — net capital gains (after any 50% discount for assets held over 12 months) in the capital gains section, and crypto income in the income section. Keep records of dates, AUD values, cost base and the nature of each transaction. The ATO runs data-matching with Australian exchanges, so reconcile carefully. Confirm the current discount rules, personal-use threshold and reporting labels with the ATO before filing.

Frequently asked questions

How does the ATO tax crypto?

The ATO treats crypto as property and, for most investors, as a CGT asset. Disposing of crypto (selling, swapping, gifting, spending) is a CGT event. Staking rewards, some airdrops and business trading are taxed as ordinary income at market value on receipt.

What is the 50% CGT discount?

Individuals and certain trusts who hold a CGT asset for more than 12 months before disposal can generally halve the taxable capital gain. Crypto held 12 months or less does not qualify, so the full gain is assessed.

Is crypto a personal-use asset in Australia?

Rarely. The personal-use asset exemption is narrow — it applies only to crypto genuinely acquired and used to buy personal goods or services below the threshold, not held for investment, profit or business. Most investors do not qualify.

Where do I report crypto in my Australian tax return?

In your annual individual tax return using the ATO crypto labels: net capital gains in the capital gains section and crypto income in the income section. Keep records of dates, AUD values and cost base; the ATO data-matches with exchanges.