In Australia, the ATO treats crypto held as an investment as a capital gains tax (CGT) asset. Selling it, swapping it for another token, gifting it or spending it is a CGT event. The net capital gain is added to your taxable income and taxed at your marginal rate. Individuals who held the asset for at least 12 months before disposing of it can halve the gain with the 50% CGT discount. That is the whole framework; the details below decide how much you pay for the 2025โ26 income year, as of October 2026.
CGT events with crypto
- Selling crypto for Australian dollars or another fiat currency.
- Swapping one crypto for another, including into stablecoins or wrapped tokens. The ATO treats each swap as disposing of the first asset at the market value of what you receive.
- Using crypto to pay for goods or services.
- Gifting crypto or donating it, except to deductible gift recipients in specific cases.
- Not a CGT event: moving crypto between wallets you own, buying with AUD.
The ATO also says that wrapping a token or moving it through some DeFi arrangements can be a disposal when beneficial ownership changes. If you bridged or wrapped coins during the year, check the ATO's DeFi guidance for that specific step.
The 50% discount
If you are an individual and owned the crypto for at least 12 months, excluding the days of acquisition and disposal, you can reduce the capital gain by 50% after applying capital losses. A coin bought on 10 August 2024 qualifies if sold on or after 11 August 2025. Companies do not get the discount; super funds get one-third. The holding period calculator shows the date each lot qualifies.
Rates for 2025โ26
| Taxable income | Rate on that slice |
|---|---|
| $0 โ $18,200 | 0% |
| $18,201 โ $45,000 | 16% |
| $45,001 โ $135,000 | 30% |
| $135,001 โ $190,000 | 37% |
| $190,001 and over | 45% |
The Medicare levy of 2% usually applies on top. Because the net gain is added to your other income, the same gain costs a different amount for different people. Example: you earn $90,000 and sell BTC bought 18 months ago with a $20,000 gain. The discount leaves $10,000 of net capital gain, all in the 30% bracket: $3,000 plus $200 Medicare levy. Without the discount it would be $6,400. The Australia crypto tax calculator applies the brackets to your income.
Losses
Capital losses reduce capital gains in the same year, before the discount is applied, and any remaining net capital loss carries forward indefinitely. Capital losses cannot reduce salary or other ordinary income. The ATO looks for wash sales: selling crypto at a loss and rebuying the same or a substantially identical asset soon after mainly to create a tax benefit can be cancelled under general anti-avoidance rules.
Personal use assets
Crypto acquired for less than $10,000 and kept mainly to buy items for personal use or consumption can be a personal use asset, and gains on it are disregarded. The ATO applies this narrowly: holding coins as an investment, trading them or keeping them for a long period before spending usually rules it out. Do not assume your crypto qualifies.
Income, not capital
Staking rewards, mining rewards from a hobby setup, airdrops that are part of a business and crypto received as salary are ordinary income at their AUD value when received. That value becomes the cost base for a later disposal. If you carry on a business of trading crypto, profits are ordinary income and the CGT discount does not apply.
Lost and stolen crypto
If you lose the private key to a wallet or crypto is stolen, the ATO says you may be able to claim a capital loss, but only with evidence: when and how you acquired the coins, the wallet address, the transactions showing the loss, and that you cannot recover them. Losing access through a forgotten password with a chance of recovery does not count. Funds sent to a scam are judged on their facts, so keep every message and transaction hash.
Records and data matching
The ATO runs a data-matching program with Australian designated service providers, so exchange activity is often already known to it. For each transaction you need the date, AUD value, what it was for and who the other party was, which can simply be the service used. For swaps on a non-custodial service such as KOT.CASH, save the order link with both amounts and hashes. The income year ends on 30 June; self-lodged returns are due by 31 October.
FAQ
Is swapping crypto taxable in Australia?
Yes. A crypto-to-crypto swap is a CGT event; you dispose of the first asset at the market value of the one you receive.
How long do I need to hold crypto for the CGT discount?
At least 12 months, not counting the day you bought and the day you sold. Then individuals can halve the gain.
What rate do I pay on crypto gains in Australia?
Your marginal rate on the net capital gain added to your income, from 0% to 45%, plus the 2% Medicare levy in most cases.
Can crypto losses reduce my salary tax?
No. Capital losses only offset capital gains and carry forward indefinitely.
Are staking rewards taxed when received?
Yes, as ordinary income at their AUD value when you receive them.