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Crypto is not a currency in the eyes of the ATO. It is treated as property, and that single fact drives almost every tax outcome you will face.
Crypto is a CGT asset
Because crypto is property, disposing of it triggers a capital gains tax event, just like selling shares. You make a capital gain or loss based on the difference between your proceeds and your cost base.
The disposals that are taxed
A CGT event happens when you:
- Sell crypto for Australian dollars.
- Swap one crypto for another, such as buying ETH with BTC.
- Spend crypto on goods or services.
- Gift crypto to someone else.
Buying crypto with Australian dollars and simply holding it are not taxable events. They just set your cost base for later.
When crypto is income instead
Some crypto is taxed as ordinary income at the moment you receive it, valued in Australian dollars. This commonly includes staking rewards, most airdrops, and crypto earned as payment. When you later dispose of those coins, a separate CGT event applies.
The 50% discount and losses
Hold a coin for more than 12 months before disposing of it and you may qualify for the 50% CGT discount as an individual. Capital losses from crypto offset capital gains and carry forward to future years.
Every wallet, one report
Most people trade across several exchanges and wallets, which makes cost base tracking the real challenge. Summ connects to thousands of exchanges, wallets and blockchains, classifies each transaction, and produces an ATO-ready crypto tax report.
This article is general information only and does not take your personal circumstances into account. For advice specific to your situation, speak to a registered tax agent.
The information provided on this website is general in nature and is not tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek professional advice. Summ (formerly Crypto Tax Calculator) disclaims all and any guarantees, undertakings and warranties, expressed or implied, and is not liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or Consequential Loss or damage) arising out of, or in connection with, any use or reliance on the information or advice in this website. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information in this website is no substitute for specialist advice.
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