Crypto tax
Cryptocurrency is treated as a CGT asset in Australia, so disposing of it triggers a taxable event.
The ATO treats crypto as property rather than currency. Every disposal is a CGT event, including selling for dollars, swapping one coin for another, spending it on goods, or gifting it.
Coin-to-coin swaps are the most commonly missed trigger. Trading one token for another is a disposal of the first at its market value in Australian dollars, even though no cash was involved.
Holding for more than twelve months makes the 50% CGT discount available. Trading frequently enough to be carrying on a business changes the treatment entirely, with gains taxed as ordinary income and no discount.
A swap is a sale
You bought a coin for $2,000 and swapped it for another when it was worth $9,000. That is a $7,000 capital gain, taxable in that year despite never converting to dollars.
The bit people get wrong
The ATO receives data from Australian exchanges and matches it against returns. Undeclared crypto disposals are among the more visible discrepancies in the system, not among the more hidden ones.
Common questions
Do I pay tax if I only hold crypto?
No. Simply holding is not a CGT event. Tax arises when you dispose of it by selling, swapping, spending or gifting.
What about crypto losses?
They are capital losses, usable against capital gains and carried forward indefinitely. They cannot be offset against salary income.
Is staking income taxable?
Rewards from staking are generally ordinary income at their market value when received, and then form the cost base for a later disposal.
Run your own numbers
Related terms
Source: Australian Taxation Office