Capital Gains Tax on Crypto Australia (2025–26)

The ATO treats cryptocurrency (including Bitcoin, Ethereum, stablecoins and NFTs) as a CGT asset, not as currency. This means that most crypto transactions — selling, trading, gifting or converting to Australian dollars — can trigger a capital gains tax event.

This guide covers the ATO's crypto CGT rules, which events are taxable, the personal use exemption and how to calculate your gain or loss.

Calculate now: Use the Capital Gains Tax Calculator to estimate CGT on your crypto disposal.

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Which crypto events trigger CGT?

Event	CGT event?	Example
Selling crypto for AUD	Yes	Selling Bitcoin on an exchange for cash
Trading crypto for crypto	Yes	Swapping ETH for SOL — each swap is a disposal
Using crypto to buy goods/services	Yes	Paying for a purchase with Bitcoin
Gifting crypto	Yes	Market value at the time of the gift is the proceeds
Buying crypto with AUD	No	This is an acquisition, not a disposal
Transferring between your own wallets	No	No change of ownership
Receiving airdrop or fork	Depends	May have $0 cost base; CGT applies on later disposal

Key rule: Every time you dispose of a crypto asset, you need to calculate the capital gain or loss for that specific event.

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How CGT on crypto is calculated

Step	Formula
1	Capital proceeds = Value received (in AUD at the time)
2	Cost base = Purchase price (in AUD at the time) + exchange fees
3	Capital gain = Proceeds − Cost base
4	Subtract capital losses
5	Apply 50% discount (if held 12+ months, individual)
6	Net capital gain added to taxable income

What's included in the cost base

• Purchase price in AUD at the time of acquisition
• Exchange fees and transaction fees on the buy side
• Gas fees directly related to acquisition (e.g. minting an NFT)

What reduces capital proceeds

• Exchange fees and transaction fees on the sell side

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The personal use exemption

Crypto acquired and used solely for personal use (not as an investment) may be exempt from CGT if the cost was $10,000 or less.

Conditions for the exemption

All of these must be true:

• You acquired the crypto to buy goods or services for personal consumption
• You used it within a short period of acquiring it
• The original cost was $10,000 or less
• You did not hold it as an investment or for trading

What does NOT qualify

Scenario	Personal use?
Buying Bitcoin and holding it for 6 months hoping it rises	No — investment
Buying ETH to use on a DeFi protocol	No — investment/financial
Buying a $50 gift card with crypto you bought that week	Possibly yes
Buying crypto on a regular schedule (DCA)	No — investment pattern

Tip: The ATO looks at the purpose at the time of acquisition, not just how you eventually used it. If the dominant purpose was investment, the exemption does not apply.

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Crypto-to-crypto trades

Swapping one crypto for another (e.g. BTC → ETH) is treated as two events:

1. A disposal of the first crypto (triggering CGT)
2. An acquisition of the second crypto (establishing a new cost base)

The capital proceeds for the disposal are the market value in AUD of the crypto you received, at the time of the trade.

Example

You bought 1 ETH for $3,000 AUD. Six months later you swap it for 50 SOL when 1 ETH = $4,000 AUD.

Item	Amount
Proceeds (market value of 1 ETH at swap)	$4,000
Cost base (original purchase + fees)	$3,020
Capital gain	$980
Held < 12 months → no discount	$980 added to income
Cost base of 50 SOL	$4,000 (market value at time of swap)

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Staking, airdrops and DeFi

Activity	ATO treatment
Staking rewards	Generally assessable income at market value when received; cost base = that value
Airdrops	If received for nothing, cost base = $0; income may apply if connected to other activities
DeFi lending/yield	Income when received; CGT when the underlying asset is later disposed of
Wrapping/unwrapping	May be a CGT event depending on whether it involves a new asset

Note: DeFi and staking tax treatment is still evolving. The ATO has issued some guidance but many edge cases remain unclear. Keep detailed records.

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Record keeping for crypto

The ATO requires records for 5 years after lodgement. For crypto, you should keep:

• Date and time of each transaction
• Value in AUD at the time (use a consistent exchange rate source)
• Purpose of the transaction (investment, personal use, trading)
• Exchange records — trade history, fee receipts
• Wallet addresses involved
• Records of any transfers between your own wallets (to prove no disposal)

Tools that can help

Many crypto tax platforms (such as Koinly, CryptoTaxCalculator and Syla) can import your exchange and wallet history to calculate CGT automatically. The ATO accepts these tools as record-keeping aids but you are ultimately responsible for accuracy.

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Related guides

• Capital Gains Tax Calculator Australia — complete CGT overview
• Capital Gains Tax on Shares — similar rules for shares and ETFs
• Capital Gains Tax on Property — property CGT
• CGT Cost Base Explained — the 5 elements of cost base
• CGT Discount & Indexation Methods — when you qualify for the 50% discount

Important: This guide is general information only and does not constitute tax advice. Crypto tax rules are evolving and the ATO continues to issue guidance. Consider consulting a registered tax agent experienced with digital assets.