If you think your crypto transactions aren’t taxable in Australia, you might be walking into trouble. The truth is, the ATO sees more than you think. And most Aussies don’t realise when tax actually applies.
Here’s what the crypto experts at Tax NextGen want you to know (but most people don’t talk about)
✅ When Crypto Tax Actually Applies in Australia Many people believe tax is only triggered when you cash out crypto to AUD (Australian dollars). But under ATO’s latest guidelines, that’s not true. Here’s when you must report crypto for tax in Australia:
✔️ When you sell crypto for AUD. ✔️ When you swap crypto for another coin (like Bitcoin to Ethereum). ✔️ When you use crypto to buy goods or services. ✔️ When you gift crypto. ✔️ When you mine or earn crypto as income.
👉 Simply buying and holding crypto is not taxable. But as soon as you dispose of the asset, it becomes a capital gains event.
🛑 Common Misunderstandings
❌ Myth 1: Crypto swaps aren’t taxable. ✔️ Truth: Swapping coins is taxable under ATO capital gains rules.
❌ Myth 2: The ATO can’t track my overseas wallet. ✔️ Truth: The ATO now receives trading data from most major exchanges, including international platforms.
❌ Myth 3: You can ignore small trades. ✔️ Truth: Even small trades can trigger reporting obligations.
🕒 How to Report Crypto Correctly
✔️ Track every trade, even swaps and gifts. ✔️ Calculate capital gains or losses. ✔️ Include crypto gains on your tax return (under capital gains section). ✔️ If you earned crypto (via mining, airdrops, staking) – report as income.
👉 Pro tip: The ATO allows the 50% capital gains discount if you hold your crypto for more than 12 months.
💡 Why Crypto Investors Should Care
The ATO’s data-matching program now specifically targets crypto transactions. Failing to report correctly may result in late fees, amended assessments, or worse—future audits.
At Tax NextGen, we help you: ✔️ Track trades properly ✔️ Calculate capital gains and losses ✔️ Lodge crypto tax correctly ✔️ Minimise ATO risks
📞 Need Help With Your Crypto Tax? DM us on Instagram or Facebook. Lodge online with Tax NextGen – your crypto tax experts.
