The Complete Crypto Tax Guide for Australia in 2025

📌 Intro to Crypto Taxes in Australia (2025)

In Australia, the Australian Taxation Office (ATO) oversees the taxation of cryptocurrency. They treat digital assets as property, not money. This means that when you buy, sell, or use crypto, it can have tax consequences. In this guide, we’ll explain how taxes work when it comes to buying, selling, or earning crypto in Australia.

📅 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.

💼 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.

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.

💸 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:

🔍 Tax Treatment of Specific Crypto Transactions

Mining and Staking

• Rewards are considered income and must be reported.

• When you later sell these rewards, you may also pay capital gains 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.

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.

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.

Please click here for a full guide on reducing 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.