Crypto might feel like a new frontier, but when it comes to the ATO, it’s treated just like any other investment — and that means Capital Gains Tax (CGT) applies.
And here’s what surprises most people: CGT doesn’t just apply when you cash out to Aussie dollars. It can also kick in when you move between coins or tokens. Yep, even if you never touched your bank account.
Let’s break down the key things you need to know.
1. Selling or Swapping Crypto Triggers a CGT Event
Most people understand that if you buy Bitcoin for $2,000 and later sell it for $4,000, the $2,000 gain is taxable.
But here’s the catch: swapping one crypto for another also counts as a disposal in the ATO’s eyes. So if you trade ETH for SOL, or Bitcoin for Dogecoin, you’ve triggered a capital gains event.
Even if you’re just moving coins within your portfolio, each transaction needs to be tracked.
2. You Need to Keep Records of Every Transaction
Crypto tax can be messy — especially if you’ve made a lot of trades. But the ATO expects you to keep detailed records of:
- What you bought or sold
- The date of the transaction
- The value in AUD at the time
- Any associated fees
If you’re using an exchange or wallet, most will allow you to download a CSV of your history. And if you’re using multiple platforms or wallets, it’s worth using a crypto tax software that helps consolidate your transactions.
3. Long-Term Holders Get a Discount
If you hold your crypto for more than 12 months before disposing of it, you may be eligible for the 50% CGT discount. This can significantly reduce the amount of tax you pay on your profits.
But remember: the 50% discount only applies to individuals, trusts get a 33.33% discount but companies do not get any discount, and the discount applies only if you meet the criteria.
4. It’s Not Just About Profits
If you made a loss when you sold or swapped crypto, that’s still important to declare. Capital losses can be used to offset future capital gains, reducing your tax bill down the track.
So even if your crypto portfolio is in the red, there might be a silver lining at tax time.
5. The ATO Is Watching
Don’t assume crypto is flying under the radar. The ATO receives data from most major exchanges, both local and international.
If you’ve been dabbling in crypto and not reporting it, now’s the time to get your records in order.
Final Word
Crypto might feel like a game, but the tax consequences are very real. If you’ve traded, sold, or even just shuffled coins around in the past year, it’s worth taking a close look at your obligations.
If you’re unsure how it all applies to you, or want help sorting through your transactions, reach out. We’re here to help you get it right — and avoid surprises.
Because knowledge is power — and that includes knowing what the ATO expects from your crypto activity.