Crypto Tax Australia: Complete Guide for 2025
Crypto Taxes in Australia
In Australia, the tax treatment of cryptocurrency depends primarily on whether you are an investor or a trader/business. The Australian Taxation Office (ATO) generally classifies crypto as property or an asset, not a currency.
Reporting and Deadlines
Tax Year: July 1 to June 30.
Filing Deadline: Usually October 31 for individuals.
Forms: Use the ATO's online services or paper forms to report crypto transactions.
Australia Crypto Tax Basics
Taxable Transactions
According to the ATO, taxable crypto transactions include:
Selling or swapping crypto for a profit.
Paying for goods or services with crypto.
Receiving crypto in exchange for work, mining, staking, or as an airdrop.
Non-Taxable Transactions
You don't pay tax when you:
Buy crypto. Buying is not a taxable event. Only selling for a profit is.
Transfer crypto between your own wallets.
Give small gifts of crypto, under certain conditions.
Deducting Losses
If you sell crypto for less than you bought it, you can use that loss to reduce other capital gains.
If you can't use all the loss in one year, you can carry it forward to future years.
Personal Use Assets
Depdending on how you use your crypto, some of your tokens may be considered Personal Use Assets, and taxed differently than crypto that’s purchased as an investment.
Crypto is defined as a personal use asset if:
It is mainly used for regular purchases of products and services
A crypto asset is used to purchase goods or services soon after you purchase the crypto asset.
Essentially, if you use your crypto like money, it is most likely considered a personal use asset, and gains and losses may be exempt from taxation.
NFTs may also be personal-use assets depending on how they are used. If a utility is attached to an NFT (it’s used as a ticket, as a piece in a game, etc.), it is most likely a personal-use item.
Read our full guide to NFT taxes.
Key Allowances and Thresholds
A few noteworthy exemptions that may allow you to avoid paying taxes on crypto gains include:
If you hold crypto for personal use and it's worth less than $10,000, it may be exempt from capital gains tax.
The personal use exemption, described above.
The first $18,200 of your income is tax-free. So if you earn less than $18,200 total in a given year, you don't have to pay taxes on your crypto income.
Australia Income Tax Brackets
Australia has a progressive tax system, meaning the more you earn, the higher your tax rate. Rates range from 0% to 45%, depending on your income:
Taxable Income ($) | Marginal Tax Rate (%) |
$0 – $18,200 | 0% (Tax-free threshold) |
$18,201 – $45,000 | 16% |
$45,001 – $135,000 | 30% |
$135,001 – $190,000 | 37% |
$190,001+ | 45% |
Tax Treatment of Specific Crypto Transactions in Australia
Mining and Staking
Rewards are considered income and must be reported.
When you later sell these rewards, you may also pay capital gains tax.
Read our full guide to crypto staking tax.
Airdrops and Hard Forks
Airdropped crypto is considered income when received.
If you receive new crypto from a blockchain split (hard fork), it's also considered income.
Read our full crypto airdrop tax guide.
NFTs
Selling NFTs can result in capital gains tax (if you make a profit), and is taxed similarly to regular crypto tokens.
Creating and selling NFTs incurs income taxes and must be reported.
DeFi Activities
Earnings from lending, staking, or yield farming are considered income.
Selling DeFi tokens may result in capital gains tax.
Read our full DeFi tax guide.
Lost or Stolen Crypto
If your crypto is lost or stolen, you may be able to claim a capital loss.
You'll need specific, detailed evidence, like transaction records or police reports.
Gifting and Inheritance
Gifting crypto may trigger capital gains tax, but may also be used as a deduction.
Inheriting crypto has specific rules; it's best to consult the ATO or a tax professional.
Using Crypto Tax Software
Reporting taxes on crypto profits can be overwhelming. For most users, utilizing crypto tax software like Awaken Tax is an affordable way to make the process easy. Awaken:
Tracks transactions across multiple wallets and exchanges.
Automatically classifies and categorizes short-term vs. long-term capital gains, income, expenses, and more.
Calculates gains and losses automatically.
Generates tax reports compatible with German tax forms.
And if you ever need help with using our software or reporting taxes on your crypto profits in general, we’re always here to help!
Reducing Crypto Taxes Legally
Hold crypto for more than a year to get a 50% capital gains tax discount.
Use your tax-free income threshold.
Offset gains with any capital losses.
Plan gifts carefully to minimize tax.
Deduct eligible expenses related to earning crypto.
Read our full guide on how to reduce your taxes on crypto profits.
Conclusion
Understanding how crypto is taxed in Australia is important to stay compliant and avoid surprises. Keep detailed records of all your crypto transactions. When in doubt, consult the ATO's guidelines or seek advice from a tax professional.
For more detailed information, visit the ATO's official page on crypto asset investments.
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