Cryptocurrency Tax Returns in Australia

Cryptocurrency might be borderless, but the Australian Taxation Office (ATO) still wants its share. Whether you’re swing-trading Bitcoin, staking ETH, or collecting NFT royalties, understanding your tax duties is critical to staying compliant and avoiding painfully high penalties.

1. How the ATO Classifies Crypto Assets

In Australia, crypto assets are treated as property for tax purposes, not currency. That means most disposals trigger Capital Gains Tax (CGT). Even swapping one token for another is a taxable event

2. What Counts as a “Tax Event”?

CGT events arise when you:

• sell crypto for AUD or another fiat

• swap one crypto for another

• spend crypto on goods or services

• Gift or donate crypto

• receive staking or airdrop rewards (taxed as ordinary income when received, then CGT on disposal)

3. Record-Keeping Essentials

The ATO’s data-matching program pulls exchange records, so sloppy bookkeeping won’t cut it. Keep:

• purchase & sale dates

• AUD value at each transaction

• wallet addresses, and exchange statements

• notes explaining transfers between your wallets ato.gov.au

Need help setting up airtight records? Our small-business accountants can help.

4. Calculating Capital Gains & Income

1. Work out proceeds minus cost base for each disposal.

2. Apply the 50 % CGT discount if you held the asset for 12 + months.

3. Add staking/airdrop rewards to assessable income at the market value on the day received. ato.gov.au

Short on time? Speak to a qualified advisor to automate the heavy lifting.

5. What’s New for FY 2025-26?

From 1 July 2025, the government is set to introduce a CGT charge on some unrealised gains for high-net-worth individuals, crypto included. Final regulations are still being refined, but proactive investors are already modelling exposure scenarios.

We’ll update this article as the rules are finalised.

6. Lodging Your Crypto Tax Return

• Deadline: 31 October 2025 (or later if you lodge through a registered tax agent).

• Attach a CGT schedule if net capital gains exceed the general threshold.

• Use myGov → ATO → “Capital Gains” to pre-fill some exchange data.

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Ready to file? Book a crypto-tax consultation and let Adenix handle the details.

Common mistakes to avoid when filing cryptocurrency tax returns

When it comes to filing cryptocurrency tax returns, there are several common mistakes that investors and businesses should be aware of to avoid potential pitfalls. One of the most prevalent errors is failing to maintain accurate records of all cryptocurrency transactions. Inadequate record-keeping can lead to inaccurate reporting of capital gains and losses, resulting in penalties from the ATO. It's essential to keep detailed documentation of every transaction, including dates, amounts, and the purpose of each transaction.

Another mistake is misunderstanding the tax implications of different cryptocurrency activities. Many investors mistakenly assume that simply holding cryptocurrency does not trigger tax obligations. However, any sale, trade, or exchange can result in capital gains tax liabilities. Additionally, individuals may overlook the need to report cryptocurrency received as income, leading to underreporting and potential fines. Understanding how various transactions are classified and reported is crucial for compliance.

Lastly, many individuals and businesses fail to seek professional advice when dealing with complex tax situations. The landscape of cryptocurrency taxation can be intricate, and regulations are continually evolving. Consulting with a tax professional who has expertise in cryptocurrency can help you navigate these complexities and make informed decisions. By avoiding these common mistakes, you can ensure a smoother tax reporting process and minimise the risk of penalties from the ATO.

Simplify Your Cryptocurrency Tax Returns

We know firsthand how exciting—and sometimes overwhelming—the world of cryptocurrency can be because, like you, we’re also investing in it. We’ve faced the same questions, the same ATO forms, and the same search for clarity. That’s why we’re here to help make it easier for you. Whether it’s figuring out your capital gains or getting those deductions sorted, we’re happy to share what we’ve learned. Reach out if you need a hand—let’s tackle this crypto tax thing together!

🔎 Frequently Asked Questions

1. Do I pay tax on crypto if I haven’t cashed out? Yes—swapping, gifting, or spending crypto counts as disposal and triggers CGT. Holding alone does not.

2. Are long-term crypto gains still discounted in 2025? Yes. Hold an assetfor > 12 months and you may reduce the capital gain by 50 %. ato.gov.au

3. How are staking rewards taxed? Rewards are ordinary income at market value on receipt, then CGT applies when you later sell. ato.gov.au

4. Are airdrops taxable the moment I receive them ?Usually yes—unless it’s a hard-fork windfall without a ready market value, which the ATO may treat differently.

5. Can I deduct crypto-related expenses? If you run a crypto business or trade regularly, exchange fees, wallets, and market-data subscriptions may be deductible. Speak to a tax professional.