Summ (formerly Crypto Tax Calculator) is specialised crypto tax software for investors like you.
Once you connect your exchange accounts and wallets, our software will automatically scan your transactions and automatically calculates your taxes owed according to the latest IRS tax guidelines.
This helps ensure that any losses, deductions or fees are accurately recorded on your taxes, which can substantially reduce how much tax you pay.
In most cases of buying and selling cryptocurrency as a retail investor, you are participating in investing rather than trading. The two are treated differently for tax purposes.
The key difference between investing and trading – along with the different tax treatments, is how losses generated in the crypto-activity can be used.
In their guidance, HMRC have explicitly stated that they would expect it to be exceedingly rare that any crypto-activity constituting buying & selling crypto would be classified as “trading”.
If you are uncertain, speak to a tax advisor as there are always exceptions, including but not limited to, developing tokens and large scale mining.
You can be liable for both capital gains and income tax depending on the type of cryptocurrency transaction, and your individual circumstances. For example, you might need to pay capital gains on profits from buying and selling cryptocurrency, or pay income tax on interest earned when holding crypto.
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Crypto capital losses offset capital gains and carry forward indefinitely in Australia, but they can't be deducted against your salary. Here's how to claim them.
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Yes, crypto losses can reduce your tax, but only in a specific way. The ATO treats crypto as a CGT asset, so a loss on disposal is a capital loss. Capital losses offset capital gains. If your losses exceed your gains, the net capital loss is carried forward to future years, with no time limit, to offset future capital gains.
The key difference from the US: a net capital loss cannot be deducted from your salary, wages or other income. There is no annual deduction against ordinary income (the US allows up to $3,000). Your losses sit in the capital pool until you have capital gains to use them against.
Cost base is your purchase price plus buying fees. Proceeds are what you received on disposal. Capital loss = cost base minus proceeds. Example: bought BTC for AUD 10,050 (including a AUD 50 fee), sold for AUD 9,000, so a AUD 1,050 capital loss.
Apply current-year losses against current-year gains. A useful sequencing point: apply losses against gains that don't qualify for the 50% CGT discount first (typically assets held under 12 months), to preserve the value of the discount on your remaining long-held gains.
If losses exceed gains, carry the net capital loss forward to offset gains in any future year. Track your carried-forward losses; there's no expiry.
Report capital gains and losses in the capital gains section of your return. Even in a pure loss year, report the losses so they're on record to carry forward.
These don't fit neatly into a capital loss on disposal, and the treatment is complex. General pointers, not advice:
Keep dates of acquisition and disposal, AUD purchase and sale values, fees, and platform details. Good records substantiate your return and protect you in a review. Summ (formerly Crypto Tax Calculator) automates loss calculations and carry-forward tracking so you don't overpay by leaving losses on the table.
This article is general information, not tax advice.
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.
James Edwards has been active in the cryptocurrency industry for over 10 years. He is an avid user of DeFi and believes in the promise of a user-owned and operated web.
His expertise as a cryptocurrency journalist has seen him contribute to publications such as Nasdaq, CoinMarketCap and CoinTelegraph.
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Swapping one crypto for another is a CGT event in Australia. You work out the AUD value of the gain or loss at the time of the trade, even though no dollars change hands.
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Here is the complete 2026 guide to Coinbase tax under ATO rules, including CGT events, Earn rewards, the Coinbase Card, and how to lodge.
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The complete guide to understanding and filing your NFT taxes in Australia.
Struggling to understand the ATO's cryptocurrency tax rules? This guide uses plain language and clear examples to explain what's changed for FY2026, including new CARF reporting requirements and updated lodgment dates.
Import your transactions and generate a free report preview.
