In Australia, the cryptocurrency is taxed. Regardless of whether you trade in NFTs, stake or sell NFTs – you are required to declare your profits (or losses) to the Australian Taxation Office (ATO). In this 2025 guide, we will take you through the process of how you can legally report your crypto income and minimise your tax and not bear the penalty charges of the ATO.
What is a Crypto Capital Gain?
In Australia, most crypto transactions fall under Capital Gains Tax (CGT).
You make a capital gain when:
- You sell crypto for fiat (AUD, USD)
- Exchange one coin with another (BTC- ETH)
- Purchase commodities or services using crypto
- Send or give crypto
When the crypto is higher in value when you sell it than at a time when you bought it, you have a capital gain. When it is lesser in value, you have incurred a capital loss.
How to Report Crypto Gains to the ATO (2025 Process)
You report your crypto gains when lodging your individual tax return (MyTax or via your tax agent).
Step-by-Step:
- Track Every Transaction
Run the software such as: Koinly, CoinTracker, or CryptoTaxCalculator- Import your data of Wallet, exchange, and DeFi
- Classify trades (staking, swaps, NFTs)
- Generate a CGT Report
- Calculate Your Net Capital Gains
Your capital gain =Sale Price – Purchase Price – FeesApply capital loss offsets (if any)
If you held an asset for 12+ months, apply the 50% CGT discount. - Report in the “Capital Gains” Section
- Log in to myGov > ATO > Income Tax Return
- Select ‘Capital Gains’
- Enter net capital gains from your report
- Attach any loss carryovers from previous years
- Keep All Records
ATO requires you to keep records for 5 years, including:- Dates of acquisition/disposal
- Market value in AUD
- Receipts, invoices, or wallet screenshots
What if I Only Swapped Crypto?
Yes — even crypto-to-crypto swaps are taxable events in Australia.
Example: If you swap 1 ETH for 0.03 BTC, the ATO treats it as if you sold ETH for AUD and then bought BTC — and you must report the capital gain/loss on ETH.
Do I Pay Tax on Staking, Airdrops, or Mining?
Yes, but these are treated differently:
| Activity | Tax Type | When You Pay |
|---|---|---|
| Staking Rewards | Income Tax | When received (market value in AUD) |
| Airdrops | Income Tax (initial), CGT on sale | On receipt and disposal |
| Mining | Income or Business Tax | Based on structure |
You then pay CGT if you later sell the tokens for a profit.
Example: Reporting a Capital Gain
You bought 1 ETH for $2,000 in March 2023.
You got $3,200 dollars for it in April 2025.
Capital Gain = $3,200 – $2,000 = $1200
You since you held for over 12 months you get a 50% CGT discount:
Taxable gain = $600
This $600 is added to your taxable income.
What If I Don’t Report?
The ATO receives data from:
- Binance, CoinSpot, Coinbase, Swyftx, etc.
- Chainalysis & data-matching tools
Failure to report can result in:
- Penalties
- Interest charges
- Audits or legal action
Always report — even if you made a loss (you can carry it forward).
How to Minimise Crypto Tax in 2025
- Hold for 12+ months to claim the 50% discount
- Offset capital gains with losses (from crypto or shares)
- Maintain records in details
- To use software such as Koinly or CryptoTaxCalculator that is approved by the ATO
- Seek advice with a registered tax agent
FAQ
Do I have to report crypto with the ATO?
Yes. In the ATO, cryptocurrency is considered as a capital asset. When someone buys, sells, trades, swaps or uses crypto in Australia, they are required to disclose their gains or losses in the annual tax return.
Does crypto get taxed in Australia?
Well, yes, in the sense that cryptocurrency is under taxation rules as Capital Gains Tax (CGT). When disposing of crypto in a profit (through sale or exchange) the profit is taxable and you must report and pay tax on the gain.
What is the method of calculating crypto capital gains in Australia?
Make use of this formula:
Capital Gain = The price of sale- the price paid- transaction fees
You can claim a 50 per cent CGT discount in case you had the asset longer than 12 months.
What will happen in case I sell only crypto and never AUD?
The tax that you pay is still there. What might seem like the end of the world, you never cash out to fiat, or even swapping one crypto to another crypto like BTC to ETH, is taxable as per the ATO guidance.
Do I have to report staking or air drop rewards?
Yes. The rewards in staking and airdrops are included in the ordinary income once they are received. Capital gains tax is then charged again, later on, when you sell the tokens.
Is it possible to deduct crypto losses in Australia?
Yes. It is possible to apply capital losses to crypto against capital gains. In a case where there are no gains during the present year, then you can carry over the losses to future profits.
Does crypto have a tax-free mark?
Crypto portrays no special tax-exempt threshold. Still, the overall tax-free income level in Australia ($18,200) is taken as a percentage of all your taxable income, including crypto.
Do I have to report crypto when I lost some money?
Yes. Every crypto disposal, profit and loss, should be reported. Losses will minimize your liability on any taxes in the current year or even in future.
What happens if I do not report cryptocurrency profit?
ATO takes data matching with exchanges (such as Binance, CoinSpot or Coinbase). Failed to report may result in:
Penalties
Interest charges
Audits
Legal action
What is crypto tax tool in Australia?
Some of the common crypto tax tools in Australia are:
Koinly
CryptoTaxCalculator
CoinTracker
Summary
Failure to declare your crypto profits in Australia is not optional, but it is the law instead. In 2025, the ATO is monitoring than ever before.
Yet, when it comes to being compliant, paying less tax and investing no-nervously, it can be done with the right tools and knowledge.
Tip: If you earned more than 10,000 in crypto trade during the year, talk to a crypto conscious accountant.