AU Crypto Tax

AU Crypto Tax

Australia Crypto Tax -- CGT & Income Skill v1.3

Section 1 -- Quick Reference

Quick Reference

Field	Value
Country	Australia (Commonwealth of Australia)
Tax	Income Tax -- Cryptocurrency / Digital Assets
Currency	AUD (all gains/income must be reported in AUD)
Tax year	2026-27 (1 July 2026 -- 30 June 2027)
Primary legislation	Income Tax Assessment Act 1997, Div 104 (CGT events), Div 118 (exemptions)
Supporting guidance	ATO crypto asset investments guidance; TD 2014/26 (Bitcoin as a CGT asset); TR 2026/D1 (airdrops, draft); TD 2026/D2 (wrapping, draft); ATO DeFi and wrapping guidance
Tax authority	Australian Taxation Office (ATO)
Filing portal	myTax / tax agent lodgement
Filing deadline	31 October (self-lodgement); agent-managed deadlines vary
Skill version	1.3

Core Principle

• ATO treatment of cryptocurrency — The ATO treats cryptocurrency (including Bitcoin, Ethereum, stablecoins, NFTs, and DeFi tokens) as a CGT asset, not as foreign currency. Each disposal triggers a CGT event. (TD 2014/26 (Bitcoin as a CGT asset))

Individual Marginal Tax Rates (2026-27)

Individual Marginal Tax Rates (2026-27) (ATO, Tax rates: Australian resident)

Taxable Income (AUD)	Rate
0 -- 18,200	0%
18,201 -- 45,000	15%
45,001 -- 135,000	30%
135,001 -- 190,000	37%
190,001+	45%

• Rate scale by year — The second resident bracket is 15 cents from 1 July 2026 and was 16 cents in 2024-25 and 2025-26; add the 2% Medicare levy. Non-residents have no tax-free threshold and no discount. From 1 July 2027 the 50% discount gives way to cost base indexation with a 30% minimum rate on gains accruing after that date (see 2.3). (ATO, Tax rates: Australian resident (https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents))

Key Thresholds

Key Thresholds

Item	Value
Personal use asset exemption	Acquisition cost < $10,000
CGT discount (held 12+ months)	50% for individuals and trusts
CGT discount -- companies	Not available
Capital loss carry forward	Indefinite (offset against future capital gains only)

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown acquisition date	No 50% discount available
Unknown cost base	$0 (maximum gain) -- obtain records
Unknown whether personal use or investment	Treat as investment (CGT applies)
Unknown whether trading or investing	Treat as investor (CGT, not ordinary income)
DeFi event -- unknown character	Treat as disposal (CGT event)

Section 2 -- Classification Rules

2.1 CGT Events (Disposals)

CGT Events (Disposals)

Event	CGT Triggered?
Sell crypto for AUD (or fiat)	Yes
Trade one crypto for another (e.g., BTC → ETH)	Yes -- disposal of BTC at market value
Use crypto to purchase goods/services	Yes -- disposal at market value
Gift crypto to another person	Yes -- market value at time of gift
Send crypto to an exchange for sale	No (transfer to own wallet is not disposal)
Transfer between own wallets	No -- same beneficial ownership
Lost/stolen crypto (no private key)	Possible CGT event -- must demonstrate irrecoverability

A CGT event occurs when you:

2.2 Cost Base Calculation

Cost Base Calculation

Element	Included in Cost Base
Purchase price in AUD	Yes
Exchange fees / commission on acquisition	Yes
Gas fees on acquisition transaction	Yes
Exchange fees / commission on disposal	Reduces capital proceeds (or included in cost base of new asset in swap)
Wallet transfer fees (own wallets)	Included in cost base of the asset
Subscription to portfolio tracking tool	Included (third element -- ownership costs)

• Method for identical assets — FIFO, LIFO, or specific identification -- must be consistent and documented. ATO does not mandate a method but requires consistency.
• Fees and missing parcel records — Classify each fee by the transaction it belongs to: a fee on acquisition enters the cost base of that asset, a fee on disposal is an incidental cost of that event, and a network fee is not automatically deductible or an addition to every asset's cost base. Where a parcel or acquisition record is missing, investigate exchange exports, wallet history and bank transfers before falling back to the $0 conservative default. (ATO, Transactions: acquiring and disposing of crypto assets (https://www.ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investments/transactions-acquiring-and-disposing-of-crypto-assets))

2.3 50% CGT Discount

• 50% CGT Discount availability — Available if: - The asset was held for at least 12 months (acquisition to disposal) - The taxpayer is an individual or trust (not a company or super fund at 1/3 discount) - The taxpayer is an Australian tax resident at the time of the CGT event
• Events from 1 July 2027 — The 50% discount applies to eligible events before 1 July 2027. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 replaces it with cost base indexation and a 30% minimum rate for gains accruing after that date; apply the enacted transitional rules to later events. See au-capital-gains.md. (Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (https://www.legislation.gov.au/C2026A00049/asmade/text))

2.4 Personal Use Asset Exemption

Personal Use Asset Exemption Conditions

Condition	All Must Be Met
Acquired for personal use (e.g., to purchase goods)	Yes
Acquisition cost < $10,000	Yes
Used within a short time of acquisition	Yes
NOT held as an investment	Yes
NOT held for exchange/trading purposes	Yes

• Exemption failure conditions — If ANY acquisition cost ≥ $10,000, the personal use asset exemption does NOT apply. If crypto is kept on an exchange or held for extended periods, the ATO considers it an investment -- NOT personal use.
• Threshold is acquisition cost, not proceeds — The $10,000 test looks at what the crypto cost to acquire, not what it was worth when spent. Spending a long-held investment holding on personal goods does not turn it into a personal use asset, and a capital loss on a personal use asset is disregarded. (ATO, Crypto asset as a personal use asset (https://www.ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investments/crypto-asset-as-a-personal-use-asset))

2.5 Trading vs Investing

Trading vs Investing

Factor	Investor (CGT)	Trader (Business Income)
Volume of transactions	Low to moderate	High frequency, systematic
Holding period	Weeks/months/years	Minutes/hours/days
Purpose	Long-term growth	Profit from short-term price movements
Organisation	Casual / part-time	Business-like, significant time commitment
Capital employed	Personal savings	Significant working capital
Tax treatment	Capital gains (50% discount available)	Ordinary income (no CGT discount, no capital loss restrictions)
Losses	Capital losses only	Business losses (offset all income)

• Frequency alone does not decide — Establish whether the taxpayer invests, carries on a trading or mining business, is paid for services, or undertook an isolated profit-making transaction. An isolated commercial transaction can produce ordinary income without a business, and business trading stock and revenue gains use different calculations from capital investments. (TR 92/3 (https://www.ato.gov.au/law/view/document?docid=TXR/TR923/NAT/ATO/00001))

2.6 Staking Rewards

Staking Rewards

Treatment	Detail
Classification	Ordinary income at market value when received
Timing	Assessable in the income year the reward is received/controlled
Cost base for future CGT	Market value at date of receipt becomes cost base
Holding period for CGT discount	Starts from date of receipt

2.7 Airdrops

Airdrops

Type	Treatment
Airdrop with no action required	Ordinary income at market value on receipt (if established market value exists)
Airdrop requiring action (e.g., claim transaction)	Ordinary income when claimed
Airdrop of worthless/no-market token	$0 income; cost base = $0
Subsequent disposal	CGT event -- cost base is value at receipt

• Airdrops are not automatically ordinary income — Establish whether the airdrop was received in a crypto trading business, for goods or services, through another income-producing activity, or as a hobby receipt, gift or windfall; current ATO guidance distinguishes these. Where it is not ordinary income the token is still a CGT asset, so record its acquisition and support its value; an unavailable price feed is not evidence that a token had no value. (ATO, Staking rewards and airdrops (https://www.ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investments/transactions-acquiring-and-disposing-of-crypto-assets/staking-rewards-and-airdrops))
• TR 2026/D1 is a draft — TR 2026/D1 sets out the Commissioner's preliminary view on airdrops, with stated scope exclusions and proposed application arrangements. Do not cite it as a final ruling; record which view was applied. (TR 2026/D1 (https://www.ato.gov.au/law/view/document?docid=DTR/TR2026D1/NAT/ATO/00001))

2.8 DeFi Specific Events

DeFi Specific Events

DeFi Action	Tax Treatment
Wrapping (e.g., ETH → WETH)	ATO view: likely a disposal (CGT event). Conservative: treat as disposal at market value
Unwrapping (WETH → ETH)	Disposal of WETH, acquisition of ETH
Providing liquidity (LP tokens)	Disposal of deposited tokens; acquisition of LP token at combined market value
Removing liquidity	Disposal of LP token; acquisition of underlying tokens
Yield farming rewards	Ordinary income at market value when received
Borrowing against crypto (collateral)	Not a disposal (no change of beneficial ownership). BUT if liquidated -- CGT event
Bridge transactions (cross-chain)	Conservative: treat as disposal + acquisition
Token migration/hard fork	New token acquired at $0 cost base; not assessable until disposed

• Read the mechanics before choosing the event — Depositing into a liquidity pool, receiving a replacement token, lending, borrowing, wrapping or unwrapping can change or end rights even where the economic exposure looks unchanged. Record the assets and rights held before and after the transaction; the CGT event can be A1, C2, E2 or H2 depending on the arrangement. (ATO, Decentralised finance and wrapping crypto (https://www.ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investments/decentralised-finance-and-wrapping-crypto))
• TD 2026/D2 on wrapping and unwrapping — TD 2026/D2 proposes CGT event C2 treatment for specified smart-contract wrapping and unwrapping arrangements. It is a draft with exclusions, so do not apply it to every bridge or custodial transfer; keep a record of the arrangement and the interpretation used. (TD 2026/D2 (https://www.ato.gov.au/law/view/document?docid=DXT/TD2026D2/NAT/ATO/00001))

2.9 NFTs

• NFTs treatment — Treated identically to other crypto assets. Purchase = acquisition (CGT asset). Sale = disposal (CGT event). Creating and selling an NFT = ordinary income if in the business of creating them, otherwise CGT.
• What the NFT represents decides the treatment — Business receipts, investment disposals, personal use assets and collectables each have their own rules. Neither the label NFT nor an exchange's tax category settles the result.

Section 3 -- Transaction Pattern Library

3.1 Exchange Patterns -- Coinbase

Exchange Patterns -- Coinbase

Pattern	Treatment	Notes
BUY [CRYPTO]	Acquisition	Cost base = AUD amount + fee
SELL [CRYPTO]	Disposal (CGT event)	Proceeds = AUD received
CONVERT [CRYPTO A] TO [CRYPTO B]	Disposal of A + acquisition of B	Market value at time of convert
COINBASE EARN / LEARN REWARD	Ordinary income	Market value at receipt
STAKING REWARD	Ordinary income	Market value at receipt
SEND / RECEIVE (own wallet)	Not a CGT event	Transfer -- no gain/loss
WITHDRAWAL TO BANK	Not a CGT event	Fiat transfer (already sold)

3.2 Exchange Patterns -- Swyftx

Exchange Patterns -- Swyftx

Pattern	Treatment	Notes
BUY ORDER	Acquisition	Cost base = AUD equivalent + spread/fee
SELL ORDER	Disposal (CGT event)	Proceeds = AUD credited
SWAP [A] FOR [B]	Disposal of A + acquisition of B	Market value at execution
STAKING REWARD	Ordinary income	Market value at receipt
DEPOSIT AUD	Not taxable	Fiat deposit
WITHDRAWAL AUD	Not taxable	Fiat withdrawal

3.3 Exchange Patterns -- CoinSpot

Exchange Patterns -- CoinSpot

Pattern	Treatment	Notes
MARKET BUY	Acquisition	Cost = AUD paid + 0.1% fee
MARKET SELL	Disposal (CGT event)	Proceeds = AUD received (net of 0.1% fee)
SWAP	Disposal + acquisition	Two CGT events
AFFILIATE PAYMENT	Ordinary income
REFERRAL REWARD	Ordinary income	Market value at receipt
AIRDROP	Ordinary income (if value > $0)
SEND TO EXTERNAL WALLET	Not a CGT event	Own-wallet transfer

3.4 On-Chain Patterns

On-Chain Patterns

Pattern	Treatment	Notes
UNISWAP / SUSHISWAP SWAP	Disposal + acquisition	Two CGT events at market value
LP DEPOSIT (ADD LIQUIDITY)	Disposal of tokens, acquisition of LP token
LP WITHDRAWAL (REMOVE LIQUIDITY)	Disposal of LP token, acquisition of tokens
CLAIM REWARDS	Ordinary income	Market value at time of claim
BRIDGE [TOKEN] TO [CHAIN]	Conservative: disposal + acquisition
MINT NFT	Acquisition	Cost base = mint price + gas
APPROVE / REVOKE (no transfer)	Not a CGT event	Gas fee adds to cost of next related transaction

Section 4 -- Computation Method

Step 1: Identify All CGT Events

• Identify All CGT Events — List every disposal in the financial year (sells, swaps, spends, gifts, DeFi events).

Step 2: Calculate Gain/Loss per Event

• Calculate Gain/Loss per Event — Capital proceeds − cost base = capital gain (or capital loss).

Step 3: Apply 50% Discount (if eligible)

• Apply 50% Discount (if eligible) — For each gain where asset held ≥ 12 months: net capital gain = gain × 50%.

Step 4: Offset Capital Losses

• Offset Capital Losses — Apply current and prior year capital losses against gross capital gains BEFORE applying the 50% discount. Correct order: Gross gains − capital losses = net gain. Then apply 50% discount to remaining gains eligible.

Step 5: Add Ordinary Income

• Add Ordinary Income — Staking rewards + airdrops + mining income reported as other income (not in CGT schedule).

Step 6: Report on Tax Return

• Report on Tax Return — Capital gains: Item 18 (Capital gains); Ordinary crypto income: Item 24 (Other income)

Section 5 -- Record-Keeping Requirements

The ATO requires the following records for each transaction:

Record-Keeping Requirements

Record	Required
Date of acquisition	Yes
Date of disposal	Yes
Amount in AUD at time of transaction	Yes
Purpose of the transaction	Yes
Exchange/wallet records	Yes
Counterparty details (if applicable)	Yes
Exchange rate used (AUD conversion)	Yes
Agent/exchange fees	Yes

• Retention period — Retention period: 5 years from the date of lodgement of the return in which the gain/loss is reported. For assets still held: records must be kept until 5 years after eventual disposal.
• Reconcile before calculating — Collect exchange exports, wallet addresses, transaction identifiers, timestamps, token quantities, fees and Australian dollar valuations. Match transfers between the taxpayer's own wallets so they are not recorded as sales, and check that beneficial ownership really stayed unchanged for exchange, lending and custody arrangements. Reconcile opening holdings plus receipts less disposals and fees to closing holdings, and investigate any gap. (ATO, Keeping crypto records (https://www.ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investments/keeping-crypto-records))

Section 6 -- Edge Cases

6.1 Hard Forks

• Hard Forks — Tokens received from a hard fork (e.g., Bitcoin Cash from Bitcoin) have a cost base of $0. No income at receipt. CGT event occurs on subsequent disposal with cost base = $0.

6.2 Lost or Stolen Crypto

• Lost or Stolen Crypto — A capital loss may be claimed if the crypto is demonstrably lost (e.g., lost private keys with no possibility of recovery, scam/hack with no recovery). The taxpayer must demonstrate the loss is permanent. ATO may require evidence.
• Exchange collapse and suspended withdrawals — An exchange entering administration, or suspending withdrawals, needs evidence of what asset or enforceable right remains and whether a CGT event has happened. Do not write off an account because withdrawals are suspended. Keep unresolved transactions outside the final calculation until the facts and treatment are documented, then reconcile income, gains, losses and holdings to the workpapers.

6.3 Mining

Mining

Scenario	Treatment
Hobby miner (small scale)	Mined coins acquired at $0 cost base; CGT on disposal
Business miner (significant scale)	Ordinary income at market value when mined; trading stock rules may apply

6.4 Crypto Received as Payment for Services

• Crypto Received as Payment for Services — Assessable as ordinary income (PSI or business income) at market value in AUD at time of receipt. Cost base for future CGT = that market value.

6.5 Margin Trading / Futures

• Margin Trading / Futures — Profits and losses from crypto derivatives and margin trading are generally on revenue account (ordinary income/loss) unless clearly a one-off speculative punt.

Section 7 -- Prohibitions

• Prohibitions — NEVER claim the personal use asset exemption for crypto held on an exchange for extended periods; NEVER apply the 50% CGT discount without verifying 12+ months holding period; NEVER apply the 50% CGT discount for companies or non-residents; NEVER offset capital losses against ordinary income (only against capital gains); NEVER apply capital losses before gross gains (apply losses first, THEN discount); NEVER ignore crypto-to-crypto swaps as non-events -- each swap is a disposal; NEVER assume DeFi events are non-taxable -- conservative approach is to treat as disposals; NEVER omit staking/airdrop income -- it is ordinary income when received; NEVER present tax calculations as definitive -- always label as estimated

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, CA, registered tax agent, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.

Contributed by Ryan Duguid.