How Australian crypto tax works (in plain English)
The ATO doesn't treat cryptocurrency as money. For most Australian investors it's a CGT asset — like a share or an investment property. Every time you sell, swap or spend it, the ATO calculates the gain or loss in AUD between what it cost you and what you got back. That gain is added to your taxable income for the year and taxed at your normal marginal rate.
The 12-month CGT discount changes everything
Hold a parcel of crypto for more than 12 months before disposing of it and you only pay tax on half the gain. On a A$50,000 gain that's the difference between A$25,000 taxable and A$50,000 taxable — often a A$10,000+ difference in tax payable. The discount applies to individuals and trusts; companies generally can't claim it. This single rule is why long-term DCA strategies are so tax-efficient for Australian investors.
Common tax events Australians forget
- Crypto-to-crypto swaps are taxable. Swapping ETH for SOL is a disposal of your ETH — even if no AUD touches your bank account.
- Stablecoins count. Selling BTC for USDT triggers CGT on the BTC at the AUD value of the USDT received.
- Spending crypto on goods or services is a disposal.
- Staking and airdrops are usually ordinary income at the AUD market value when you receive them, with a separate CGT event when you later sell.
Record-keeping is half the battle
The ATO requires you to keep records of the AUD value of every acquisition and disposal, including fees. Most Australian exchanges export CSVs of your transaction history. If you trade on multiple exchanges or hold in self-custody wallets, dedicated crypto tax software (Koinly, CoinTracker, Crypto Tax Calculator) can stitch the data together and apply CGT discount rules correctly.
When to talk to a professional
This calculator handles the most common case: a salaried investor with a single crypto gain or loss. If you trade actively (potentially a sole-trader business), hold crypto in an SMSF, run a mining or staking operation, or your overall income is above A$190,000, talk to a registered tax agent — the rules change materially. To get a number, run your trading P&L through the profit calculator first, then feed the result into this estimator.
This is general information about Australian tax. It is not personal tax advice. Your actual liability depends on your full circumstances — see our disclaimer.