What counts as a disposal
The ATO treats most crypto as a capital gains tax asset. Selling it for dollars, swapping it for another coin, using it to pay for something or gifting it are all disposals that can create a gain or loss.
- Moving crypto between wallets you own is not a disposal.
- Buying and holding isn’t taxed until you dispose of it.
Working out each gain or loss
For each disposal, the gain is what you received (in AUD) minus what the crypto cost you, including fees. Add up gains, take off capital losses, then apply the 50% discount to gains on crypto you held for more than 12 months.
- Losses are taken off before the discount.
- Unused losses carry forward to future years; they can’t reduce your salary income.
Rewards are usually income
Staking rewards and similar rewards are generally ordinary income at their dollar value when you receive them. That value then becomes their cost when you later sell them.
- Keep a record of each reward’s date and dollar value.
- Running crypto activity as a business is taxed differently; get advice if that might be you.
Where it goes on your return
Net capital gains go in the capital gains section of your return (in myTax, ‘Capital gains or losses’). Rewards treated as income go in the other income section. Keep the working behind every figure in case the ATO asks.
- Crypto tax software can produce the totals from your exchange exports.
- A registered tax agent can check unusual cases such as lost or stolen crypto.
Your next steps.
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Sources & fact check
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- ATO: crypto asset investments
- ATO: transactions acquiring and disposing of crypto assets
- ATO: CGT discount
- ATO: keeping crypto records
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