Crypto Capital Gains Tax in Australia – Rules, Rates & Examples (2025)

What Is Capital Gains Tax (CGT) in Australia?

Capital gains tax in Australia applies to the disposal of crypto assets, from Bitcoin (BTC) to NFTs or meme coins, with investors having to calculate the profits they had on each trade.

‍Capital gains are calculated by deducting the cost basis (including any fees to acquire that crypto asset) from the sales proceeds on each trade. This applies if you’re considered an investor in the eyes of the Australian Tax Office, which applies to most people. If you’re buying and selling crypto casually, and engage in other crypto activities in a non-frequent manner, you’ll likely be an investor for tax purposes. However, there could be exemptions if your crypto is considered a personal use asset.‍

However, there are more distinctions you need to know regarding the taxation of crypto capital gains.

Short-term vs long-term Capital Gains

In Australia, investors with a long-term focus can get tax benefits. If you hold your crypto for at least 12 months before selling, only 50% of the gain you generate will be taxed. If you generate a AUD 1,000 profit on a trade, only AUD 500 will count towards your taxable profit in that tax season. Whereas if you buy a cryptocurrency and sell it within one year, your full profit will count towards your taxable gains.

Current CGT rates in 2025

Your crypto capital gains, whether short-term or long-term, will be taxed under your regular income tax rates in Australia. Here are the income tax rates for 2025 in Australia:

Which Records You Need to Keep for Crypto CGT in Australia?

In Australia, crypto investors have to maintain thorough documentation of their trading activity since the ATO is closely watching to see if investors report crypto correctly and pay their taxes.

Every tax season, investors should keep track and store the following information about their crypto activity:

• Purchase value of any cryptocurrency
• Amount received from every crypto sale
• Profit or loss on each trade
• Fair Market Value (in AUD) of any crypto income (e.g., staking, mining rewards) received
• Dates of buying and selling
• List of assets bought/sold, their intended use, and wallet addresses

How to Calculate Capital Gains

Capital gains in Australia are calculated by subtracting the cost basis, including any purchase fees, from the total sales proceeds, from the total sales proceeds (the amount of the sale). Capital losses are calculated the same way.

Example

Here’s an example of how to calculate crypto gains in Australia:

• John bought 1 Bitcoin for AUD 30,000 on Date X
• Then, he sold 1 Bitcoin for AUD 40,000 on Date Y
• John paid 200 AUD in fees
• The gain in this trade will be calculated as: AUD 40,000 (sales proceeds) - AUD 30,000 (purchase value) - AUD 200 (fees)‍
• The final gain is AUD 9,800

How to Reduce or Avoid CGT on Crypto in Australia

Australia offers some benefits for crypto investors to legally reduce their capital gains taxes, from long-term focused tax benefits to the ability to offset gains with losses.

Here’s how you can reduce or avoid capital gains taxes on crypto in Australia:

Hold assets for 12+ months

Holding crypto for the long-term is the best way for Australian investors to save on their crypto taxes. By holding crypto for over 12 months before selling, investors get a 50% discount on their capital gains taxes.

Harvest losses at year-end

If Australian investors have losses from crypto trading, they can deduct those losses in that tax year or carry them forward to lower their capital gains taxes in future years. 

Sell during low-income years

Given that capital gains are taxed according to income tax rates, it would be smart to realize your gains in a year with less income so you can fall under a lower tax rate. 

Track & plan with CoinTracking

The only way to optimize your portfolio easily and know which coins in your portfolio are eligible for tax benefits (based on their holding period) is with a crypto tax calculator like CoinTracking which automates the process for you.

Capital Gains Tax in Other Countries 

Here’s how other countries look at capital gains taxes from cryptocurrencies:

United States

The US treats any crypto disposal, from trading to spending crypto, as a taxable capital gains event. Investors have to calculate the profit on each trade and are taxed according to a long-term or short-term capital gains tax rate, depending on the holding period of each cryptocurrency sold. Check our US crypto tax guide to learn how to calculate your gains correctly. 

United Kingdom

The UK taxes any crypto disposal as trading/swapping/spending under capital gains taxes. The capital gains tax rate will depend on the overall taxable income of that investor. Discover more in our UK crypto tax guide.

Canada

Investors in Canada can enjoy a 50% discount on their gains if they are considered a casual investor, meaning only 50% of their profit from crypto trading is taxable. The tax rates for those capital gains will depend on the total taxable income of that investor. For more information, please check our Canada crypto tax guide.