How to calculate Crypto Tax in Australia?

calculate Crypto Tax

In Australia, the citizens pay Capital Gains Tax and Income Tax on their crypto investments. However, the percentage of Capital Gains Tax is always similar to the rate at which the personal income tax is paid. The Australian government does not see bitcoins and cryptocurrencies as money or foreign currency.

Instead, crypto is classified as property and asset for Capital Gains Tax (CGT) by ATO. It is the ATO that tracks this digital currency. The tax treatment depends on whether a person is being seen as an individual investor or an individual making regular income from trading. A crypto Australian tax calculator can be used to calculate the benefit or loss for every crypto sale.

How can you minimize capital gains on crypto?

Maintaining all of your receipts for fees associated with purchases of capital-profits assets is vital. These fees may encompass buying and selling charges, withdrawal charges, and other expenses incurred while buying and selling crypto. The most straightforward manner to limit your crypto capital profits tax is to personalize the asset for over 12 months, as this can provide you with a 50% discount.

A Capital Gains Tax (CGT) occasion happens while you do away with your cryptocurrency. Dispose doesn’t simply imply promotion, though. In fashion, you will consider disposal any time your crypto trades ownership.

Right here are four methods to pay Capital Gains Tax:

  • You can sell it for AUD (or every other fiat currency).
  • You can swap crypto for crypto, along with stablecoins.
  • You can spend it on items and services (if now no longer visible as a private use asset).
  • You can gift cryptocurrency.

Remember, if you maintain this currency for 365 days before making disposal – you’ll pay 50% much less tax on any capital gains.

How can ATO track this digital currency?

If you’ve got an account with an Australian cryptocurrency particular provider (DSPs), then it’s in all likelihood that the ATO already has your records.

  • The ATO has records matching software with Australian exchanges.
  • The ATO knows who has crypto transaction records from as far back as 2014.
  • The ATO has the recognized customer (KYC) statistics you supplied while signing up for any Australian change or wallet.

In 2020 and 2021, masses of heaps of Australian crypto buyers have been handed a letter from the ATO cautioning that this digital currency became indeed taxable and that failure to claim should bring about consequences for tax evasion.

Terms To Know In Crypto While Trading

  • A capital loss: A capital benefit or loss is the distinction in price from while you obtained your crypto to while you bought or, in any other case, disposed of it. If you’ve got to make the most of your crypto’s growing price, you have a capital benefit and will also pay Capital Gains Tax on that profit. If you’ve got a loss out of your crypto lowering in price, you have a capital loss (and also, you might not pay tax). This can easily be calculated by using a crypto Australian tax calculator.
  • Lost/stolen crypto: The crypto enterprise is rife with scams and hackers, and a long way too many buyers have fallen foul of dropping their keys and getting admission to their wallets. Well, it’s accurate information for Aussies as you’ve got plenty of avenues to be had to you to recoup your losses – whether or not that is through claiming for a capital loss or figuring out a loss through a transaction.
  • Income tax: As a personal investor, `traditionally’ you are approximately the long game, the capital gains. You ought to earn profits from this digital currency in some of the approaches. However, it is clean to start ‘acting’ like a trader, so circulate with caution.


When calculating the tax on Australian crypto, there are different tax rules for individual investors and traders earning a regular income as specified by the ATO. For example, investors can access a 50% Capital Gains Tax discount for long-term gains, but traders are not equipped with such a benefit. With the help of a tax calculator, an investor can easily calculate tax on crypto capital gains, capital losses, income tax, and more.