Crypto Tax in Australia: CGT Events and the 12-Month Discount
2026-09-08
General information, not tax or legal advice. Australian tax residents should check ATO guidance or an independent adviser for their circumstances.
The ATO treats crypto assets as property, but the tax account depends on who you are: investors generally face capital gains tax on disposals, while business traders hold coins as trading stock with sale proceeds assessable as ordinary income (ATO: crypto assets used in business). This article follows the investor path unless stated otherwise (ATO: crypto investments overview).
The Key Distinction: CGT Asset With a Discount for Patience
For investors, a gain arises where proceeds exceed cost base and a loss where they fall short, including brokerage in the base. Individuals holding at least 12 months before disposal may discount the net capital gain by 50 percent after offsetting capital losses (ATO: working out CGT on crypto). Buying with Australian dollars and moving coins between your own wallets are generally not CGT events (ATO: acquiring and disposing transactions).
Sales, Swaps, Spending, and Gifts
For investors, disposal is deliberately broad: selling for fiat, swapping coins, spending crypto on goods or services, and gifting all crystallise a CGT event (ATO: what counts as disposal). A personal-use-asset exception can disregard gains only where coins are kept and used mainly for personal use acquired for less than A$10,000, so treat taxable disposal as the default and confirm eligibility first (ATO: crypto as a personal use asset).
Staking and Mining
Staking rewards are generally ordinary income at Australian dollar market value when received, declared that year whether or not you sell, with that value becoming the cost base for a later CGT event (ATO: staking rewards and airdrops). Mining is fact-specific rather than a copy of staking: business and hobby mining require separate analysis of income, trading stock and costs; check the separate mining guidance (ATO: crypto mining).
Losses, Records, and Residency
Capital losses offset capital gains but not salary or other ordinary income, with unused net losses carried forward (ATO: using capital losses). Hypothetical only: a Sydney resident buys 1 unit for A$3,000 plus A$30 brokerage, holds 14 months, sells for A$7,000. Assuming no capital losses or other adjustments, the A$3,970 gain could be reduced to A$1,985 by the discount. Any staking rewards are accounted for separately. Record dates, quantities, values, fees, and wallet movements. Sources checked: 8 September 2026.
Sources and Scope
Scope: tax-resident individual investors; traders face revenue-account rules per the ATO business guidance above. Excludes companies, superannuation, and GST. If you moved countries, seek advice on residency and departure rules before using this investor example.
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