If you just opened an email from the Australian Taxation Office with a subject like "What to do if you've bought or sold crypto", take a breath. You're not in trouble. You're one of a very large group getting the same message, and it's fixable.

Here's what it means and what to do about it.

First: is this email even real?

Before you act on anything, confirm the email is legitimate. The ATO's own message warns that scammers impersonate these communications, and a crypto tax prompt is exactly the kind of email a scammer loves to fake.

A genuine ATO email will:

• Never include a link to a login page. The real ATO does not send you a link to sign in.
• Never ask for your confidential details by email, including your TFN, passwords or bank logins.
• Point you to search the ATO website yourself (using "QC" reference codes) rather than click through.

If something feels off, don't click. Forward suspicious emails to [email protected], then get to myGov independently by typing the address in yourself. When in doubt, treat the email as a nudge to check your own records, not a reason to click anything.

What the email actually means

The ATO runs a crypto asset data-matching program that collects identity and transaction data from Australian exchanges (it calls them "designated service providers"). It covers the 2014-15 through 2025-26 financial years and captures data on an estimated 700,000 to 1.2 million individuals and entities every year.

So the ATO has records that suggest you bought or disposed of crypto. That doesn't mean it knows your full tax position, only that an exchange reported activity linked to you. This email is a prompt, sent because that data shows activity on or after 1 July 2025. Think of it as the polite tap on the shoulder before you lodge your FY2025-26 return.

Respond correctly now and this is a non-event. Ignore it, lodge a return that doesn't line up with their data, and you invite a review.

What you need to do

The email points to three situations. Work out which apply to you, because most people hit more than one.

If you held and disposed of crypto as an investment. Selling, swapping, gifting or spending crypto all count as disposals, and each one triggers capital gains tax. You report the net capital gain (or loss) in the CGT section of your return. Losses aren't just paperwork either: reporting them in the year they happen lets you offset gains now and carry the rest forward.

If you earned income from crypto. Staking rewards and airdrops are ordinary income, taxed at their AUD value on the day you received them. These go in the "Other income" section, separate from your CGT.

If you were carrying on a crypto business. Trading, mining or operating an exchange as a business gets reported as business income (gross income less deductible expenses), not CGT. It's a smaller group, and if it's you, a registered tax agent is worth the call.

Whichever applies, keep your records for at least five years from the date you lodge.

What to do, step by step

1. Confirm the email is real (see above). Don't click any login links.
2. Pull your data together: every exchange account and wallet you've used, plus transaction dates, types and AUD values. This is the part people underestimate.
3. Categorise each transaction as a disposal (CGT), income (staking or airdrops), or a non-taxable event like a transfer between your own wallets.
4. Make sure your figures are complete. Capture every exchange account and wallet so nothing is missing from your return. Any prefilled crypto data in myGov is a useful cross-check, but it won't be the full picture, so don't rely on it alone. Gaps between what you lodge and what an exchange reported are what trigger reviews.
5. Lodge, or amend prior years if you're behind. Then keep your records.

Steps 2 to 4 are where a manual spreadsheet falls apart across hundreds of trades. That's the exact job Summ is built for: connect your accounts and it tracks cost base and AUD values automatically.

What if I haven't reported past years?

If you've left crypto off past returns, this is the part worth getting right, because coming forward before the ATO contacts you directly changes what you'll pay.

The ATO treats taxpayers who come forward voluntarily, before being contacted about a review or audit, far more generously. Under the ATO's rules on voluntary corrections, if you disclose a shortfall before the ATO tells you it's examining your affairs, the base penalty is reduced by 80%. Where that shortfall is under $1,000, the penalty is reduced to nil, and the general interest charge on what you owe can also be remitted.

The practical path: amend the relevant prior-year returns to include the missed gains or income, gather your records, and pay any shortfall. If you're behind on several years or the numbers are large, a registered tax agent can manage the disclosure for you. This email is your window to fix it on the best possible terms.

You might owe less than you think

The instinct after one of these emails is to assume a big bill. Often it's the reverse, because getting your reporting accurate tends to work in your favour. Depending on your circumstances:

• Losses can count. A rough few years in crypto may leave you with capital losses that can be offset against gains, but generally only if you report them.
• There's a 50% CGT discount. If you've held crypto for more than 12 months, you may be eligible for a discount that can halve the taxable gain.
• Every disposal has a cost base. You're generally taxed on the gain rather than the full sale price, so what you originally paid comes off the top. Leave it out and you could overpay.

People who report from memory tend to leave money on the table. People who reconcile properly often owe less than they expected.

Where Summ comes in

Most of the work here is admin: pulling years of transactions together and getting the numbers right. That's the part Summ takes off your plate. Connect your exchanges and wallets and it imports your full history and categorises it for you, so there's no spreadsheet and no manual matching. It keeps track of your cost base and AUD values across everything you've done, DeFi included, so the report you hand over holds up if the ATO ever asks questions.

It also helps you not overpay. Summ flags the losses you can claim, applies the 50% CGT discount where you're eligible, and has a built-in tax-loss harvesting tool. One subscription covers every prior year too, which helps if you're catching up on returns you've missed.

Get started for free and import your transactions to generate a free report preview before you pay anything.

FAQ

Does the ATO actually know about my crypto?
Assume it has a record of it. Australian exchanges report identity and transaction data to the ATO under its data-matching program, which covers the 2014-15 to 2025-26 financial years and up to 1.2 million people a year. That doesn't mean the ATO knows your full tax position, since it can't see your cost base or every wallet, but you should report as though it can already see your exchange activity, because it usually can.

Is the ATO crypto email a scam?
It can be either, so check before you act. A genuine ATO email won't contain a login link and won't ask for your TFN, passwords or bank details by email. If you're unsure, don't click anything. Forward the email to [email protected] and log in to myGov by typing the address yourself.

What happens if I ignore the ATO crypto email?
Ignoring it is the main way a routine prompt becomes a review. If you lodge a return that doesn't match the exchange data the ATO holds, expect a follow-up. Responding now, while it's still just a prompt, keeps you on the front foot.

Do I still have to report crypto if I only made losses?
Yes, and you'll usually want to. Capital losses are reported in the CGT section and can offset gains in the same year, with any excess carried forward to future years. Not reporting them means giving up a deduction you're entitled to.

Can I fix past years I didn't report?
Yes. You can amend prior returns and make a voluntary disclosure. Coming forward before the ATO contacts you about a review can reduce penalties by up to 80%, and shortfalls under $1,000 have the penalty waived. A registered tax agent can handle the disclosure for you.

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