Bitcoin Tax in Australia 2025 – An Accountant & Investor’s Guide

Q: Do I pay tax if I just hold Bitcoin?

No — CGT applies only when you dispose of it, such as selling, trading, or spending it.

Q: Is transferring Bitcoin between my own wallets taxable?

No — but you should keep records for proof in case the ATO requests them.

Q: Can I use the CGT discount on Bitcoin?

Yes, if you have held the Bitcoin for over 12 months and you are an Australian resident for tax purposes.

Q: Does the ATO really track crypto?

Yes — the ATO uses exchange reporting and blockchain analytics to track cryptocurrency transactions.

Adenix Accounting
Aug 18
3 min read

Updated: Sep 5

By Sash Denkovski, Principal Accountant at Adenix Accounting Sydney & Bitcoin Investor

Why I Wrote This

I’m not just an accountant — I’m also a Bitcoin investor. Over the past few years, I’ve helped clients navigate the tricky world of cryptocurrency tax while also managing my own Bitcoin portfolio.

In Australia, the Australian Taxation Office (ATO) is watching crypto closely. With data-matching programs that track transactions from exchanges like CoinSpot and Independent Reserve, your Bitcoin activity is never truly “off the grid.”

If you buy, sell, trade, or earn Bitcoin — this guide will help you stay compliant, avoid mistakes, and plan ahead.

A man using a smartphone with a cryptocurrency trading app open, checking the Bitcoin price in Australia. Represents Sydney crypto investors managing Bitcoin trades, tax planning, and accounting compliance with the ATO.

How the ATO Taxes Bitcoin in 2025

The ATO doesn’t treat Bitcoin like cash. Instead, it’s classed as a CGT (Capital Gains Tax) asset, similar to shares or property.

That means you could pay tax when you:

Sell Bitcoin for Australian dollars
Trade Bitcoin for another cryptocurrency
Use Bitcoin to buy goods or services
Earn Bitcoin through mining, staking, or as payment

Quick Table – When Bitcoin Is Taxable in Australia

Event	Tax Type	Notes
Selling BTC for AUD	Capital Gains Tax	12-month holding discount may apply
Trading BTC for ETH	Capital Gains Tax	Even crypto-to-crypto swaps are taxable
Buying goods with BTC	Capital Gains Tax	Based on BTC’s value at time of the transaction
Mining BTC	Income Tax	Deductions may apply if run as a business
Getting paid in BTC	Income Tax	Taxed at market value in AUD

Need help filing your crypto tax return?

Get ATO-compliant support in Sydney with Adenix Accounting

Example: A Realistic CGT Scenario

Let’s say you bought 0.5 BTC for $20,000 in July 2023. In August 2025, you sold it for $30,000.Your capital gain is $10,000 (minus exchange fees). If you held it for over 12 months, you might be eligible for the 50% CGT discount, reducing the taxable amount to $5,000.

More details: ATO – Tax Treatment of Crypto Assets.

My Top Bitcoin Tax Tips (From Experience)

Track everything — every buy, sell, trade, transfer, or payment.
Use crypto tax software to keep records ATO-ready.
Plan sales to minimise CGT, especially before the financial year-end.
Consider long-term holding for CGT discounts.
If you mine or trade actively, claim allowable deductions like equipment, software, and electricity.

📌 Related: Business Advisory Services — tax planning strategies tailored for crypto traders and investors.

Why the ATO’s Crypto Focus Is Growing

In 2025, cryptocurrency remains one of the ATO’s audit priorities. If you’ve traded on Australian exchanges — or even some overseas ones — your transactions can be traced.

Why Work With an Accountant Who Actually Invests in Bitcoin

Plenty of accountants can lodge a tax return. But if they don’t understand crypto, they might miss ways to:

Structure trades for tax efficiency
Avoid common crypto tax mistakes
Set up Bitcoin inside an SMSF legally and compliantly

Because I’m both an accountant and an investor, I bridge the gap between tax compliance and real-world crypto strategy.

FAQs – Bitcoin & Tax in Australia 2025

1. Do I pay tax if I just hold Bitcoin? No — CGT applies only when you dispose of it (sell, trade, spend).

2. Is transferring Bitcoin between my own wallets taxable? No — but keep records for proof.

3. Can I use the CGT discount on Bitcoin ? Yes, if you’ve held it for over 12 months and you’re an Australian resident.

4. Does the ATO really track crypto? Yes — through exchange reporting and blockchain analytics.

Final Thoughts

Bitcoin can be an exciting investment, but without proper tax planning, you could face a bigger tax bill than expected. If you want to maximise profits and stay fully ATO-compliant, let’s work together.