Is swapping crypto taxable in Australia?

A crypto swap is any direct trade of one digital asset for another without first converting to AUD, for example BTC for ETH, or an NFT for USDC. The ATO treats the asset you give up as disposed of, so you must account for any capital gain or loss in AUD, even though no Australian dollars change hands.

How to calculate tax on a swap

1. Find your cost base

Cost base is generally what you paid to acquire the asset, including transaction fees. Capital gain or loss = AUD proceeds at the swap minus cost base.

2. Find the AUD market value at the time of the trade

You need the AUD value of what you disposed of at the moment of the swap, usually the AUD value of the coins you received. Example: you swap 1 ETH for 50 UNI when 1 ETH is worth AUD 3,000, so your proceeds are AUD 3,000.

3. Apply the 12-month CGT discount where eligible

If you held the disposed asset for more than 12 months as an individual, eligible gains are reduced by the 50% CGT discount. Held 12 months or less, the full gain is assessable. There are no separate short-term and long-term rates as in the US; the gain is added to your assessable income and taxed at your marginal rate, after any discount.

4. Report it

Net your capital gains and losses for the year and report them in the capital gains section of your return (myTax or via your registered tax agent).

DeFi swaps

On-chain swaps (Uniswap, Raydium, any DEX) are taxed the same as swaps on a centralised exchange: each token swap is a disposal. Paying a gas fee in crypto is itself a disposal of the gas token, producing a small gain or loss, and the fee can form part of your cost base or reduce proceeds depending on the transaction.

What makes a swap taxable?

Because crypto is a CGT asset, swapping is like selling one asset and immediately buying another. The asset you give up is disposed of; the asset you receive is acquired at its AUD market value, which becomes its cost base. Even if no AUD ever hits your bank account, the swap produces a gain or loss measured in AUD.

Worked examples

BTC to ETH (gain). You buy 0.5 BTC for AUD 15,000. At the swap it's worth AUD 22,000 and you trade it for ETH. You've realised a AUD 7,000 gain. The ETH now has a cost base of AUD 22,000.

ETH to SOL (loss). You buy 2 ETH for AUD 12,000. They fall to AUD 7,500 and you swap into SOL. You've realised a AUD 4,500 capital loss, which offsets other capital gains, not your salary.

Crypto to stablecoin. Swapping BTC for USDC is a disposal like any other, even though USDC tracks the US dollar.

NFT swaps. Trading one NFT for another (or for a token) is a disposal; calculate the gain or loss on the AUD market value at the time.

What happens if you don't report swaps

The ATO receives exchange and wallet data through its crypto data-matching program and reconciles it against your return. Unreported disposals can lead to amended assessments, the shortfall, the general interest charge, and administrative penalties. Report loss-making swaps too, because unreported losses can't be used to offset gains.

Summ (formerly Crypto Tax Calculator) automates gain and loss calculations across every swap and produces an ATO-ready report.

This article is general information, not tax advice.