Australia Crypto Tax Guide 2025

The Australian tax season is drawing to a close, and Aussie crypto investors need to get their crypto taxes in order before the October 31st deadline.

BTC Markets has teamed up with Koinly to take the stress out of tax season with this guide to crypto tax in 2025.

Disclaimer: This guide is based on existing ATO guidance and is for general information only. It is not tax advice. Please seek professional advice for your circumstances.

How is crypto taxed in Australia?

The Australian Taxation Office (ATO) generally taxes crypto as either Capital Gains Tax (CGT) or Income Tax, depending on how it is used.

Investor: Buys and holds crypto primarily for long-term wealth building. Gains on assets held more than 12 months may be eligible for a 50% CGT discount.

Trader: Trades crypto like a business with frequent transactions. Profits are taxed as income and not eligible for CGT discounts.

This guide focuses on individual investors.

Capital gains and losses

The ATO considers the disposal of a crypto asset a taxable event. Disposals of crypto include:

• Selling crypto for AUD or another fiat currency
• Trading one crypto for another (including NFTs and stablecoins)
• Spending or gifting crypto
• Using DeFi protocols that swap tokens

According to the ATO website, if crypto is held for less than 12 months, any capital gains are taxed at the individual’s full income tax rate. Assets held longer than 12 months may qualify for a 50% CGT discount. Capital losses can be used to offset capital gains or carried forward to future years.

Note: The ATO does not allow wash sales (selling and quickly repurchasing the same asset to claim a loss).

Lost or stolen crypto

Under ATO rules, losses from theft or negligence may be claimed as a capital loss, but strong evidence is required to show the asset is permanently inaccessible. Losses from exchange collapses or hacks where compensation may still be possible are unlikely to qualify.

Crypto income

ATO guidance notes that some crypto transactions are taxed as income at the time they are received. This includes payments in crypto, staking and mining rewards (excluding hobby mining), most airdrops, referral bonuses, interest earned, and sales of NFTs you created. Income is taxed based on the fair market value in AUD at the time of receipt.

Tax-free crypto transactions

Not all crypto activity is taxable. The ATO states that buying and holding crypto, transferring between your own wallets (excluding fees), receiving gifts, hobby mining rewards, and donating to registered charities are tax-free.

Crypto may also be exempt from CGT if it qualifies as a personal use asset. To meet this criteria, the asset must be acquired for less than $10,000, used shortly after purchase, and applied for personal consumption.

How to calculate crypto taxes

To calculate crypto taxes, you’ll need to determine your cost base (what you paid for the asset, including fees) and your proceeds (what you received when you disposed of it).

Capital gain or loss = Sale price – cost base

If you hold multiple assets of the same kind, you must use an allowable accounting method, such as FIFO. Traders are required to use FIFO.

More on calculating crypto taxes

Crypto SMSFs

The ATO provides specific guidance for SMSFs holding crypto assets. Generally, investment income is taxed at 15% in the accumulation phase, while earnings are tax-free in the pension phase. Long-term capital gains may also receive discounts.

SMSFs must lodge a separate SMSF Annual Return, which must be independently audited before submission.

Reporting to the ATO

The Australian financial year runs from July 1st to June 30th, with tax returns generally due by October 31st (or May 15th if filing through an accountant). All crypto gains, losses, and income must be reported in the annual return.

Make tax time simpler with Koinly

Calculating crypto taxes can be complex. With Koinly, you can automatically import your BTC Markets transactions via API or CSV, and generate ATO-ready reports in minutes.

Use code BTCAU25 to get 25% off Koinly plans. Valid until October 31st 2025. Offer provided by Koinly.

For more detailed information, see Koinly’s Crypto Tax Australia guide.

Disclaimer: The information in this guide is general in nature and does not constitute financial, legal, or tax advice. Neither BTC Markets nor Koinly accept responsibility for any loss arising from reliance on the information. Please consult a qualified professional for advice tailored to your situation.