The 50% CGT discount on crypto in Australia (and why 30 June matters)

If you hold crypto in Australia, one rule does more for your tax bill than any other: the 50% capital gains tax (CGT) discount. Understanding how it works, who qualifies, and why the end of the financial year is a hard line can save you a meaningful amount of tax.

How the 50% CGT discount works

When you dispose of a crypto asset for more than you paid, you make a capital gain. If you held that asset for at least 12 months before disposing of it, individuals can apply a 50% discount, meaning only half of the gain is added to your assessable income and taxed at your marginal rate.

The 12 months runs from the date of acquisition to the date of disposal. One day short and the full gain is taxable. This is why timing a sale around your acquisition anniversary can matter.

What counts as a disposal

• Selling crypto for AUD or any fiat currency.
• Trading one crypto for another (for example BTC to ETH) — yes, this is a CGT event even though no cash changes hands.
• Spending crypto on goods or services.
• Gifting crypto to someone else.

Simply buying and holding crypto is not a CGT event. The gain (or loss) crystallises only on disposal.

Why 30 June is the line in the sand

The Australian financial year runs 1 July to 30 June. The gain falls into whichever year the disposal occurs. If you're sitting just under the 12-month mark, disposing before the anniversary forfeits the discount; waiting until you cross it can halve the taxable gain. Equally, realising a loss before 30 June can offset gains made in the same year. For the 2025–26 year (ending 30 June 2026), the self-lodgment deadline is 31 October 2026.

Investor vs trader: a critical distinction

The discount is only available to investors holding crypto on capital account. If the ATO considers you a trader carrying on a business, your gains are ordinary income and the 50% discount does not apply, no matter how long you hold individual positions. The ATO actively reviews frequent, high-volume activity, so be honest about which category you fall into.

A change worth watching

The proposed 2026–27 federal budget flags scrapping the 50% long-term CGT discount from 1 July 2027, replacing it with an inflation-based discount and a minimum 30% tax on long-term gains. Gains accrued before that date are expected to retain the existing 50% discount. It's a proposal, not law, but worth factoring into longer-term planning.

Frequently asked questions

Does the discount apply to crypto-to-crypto trades? Yes, if you held the disposed asset for over 12 months. Each trade is a separate CGT event with its own holding period.

What records does the ATO expect? Dates, AUD values at acquisition and disposal, the cost base, and the purpose of each transaction. The ATO receives data directly from exchanges and matches it against your return.

Tracking acquisition dates and cost bases across multiple exchanges and wallets — and knowing which parcels qualify for the discount — is exactly where most investors slip up. Summ imports your transactions, applies the CGT discount automatically and produces an ATO-ready report.

Generate your crypto tax report free →

This article is general information only and is not tax advice. For your specific circumstances, consult a registered tax agent.