The Australian tax rate on crypto will depend on the type of transactions you make and how much your total taxable income is for each tax season.
But there’s more! From capital gains to income taxes and even tax benefits that you can enjoy, your crypto tax rate in Australia can change significantly.
Let’s cover everything you need to know about the tax rate for crypto gains, tax rate for crypto income, and find out what is the tax rate on crypto for you!
KEY TAKEAWAYS About Taxation of Crypto in Australia
- In Australia, earning crypto income, such as staking or mining rewards will lead to income taxes according to the country’s income tax rates.
- Disposing of crypto (e.g., selling, gifting) will lead to capital gains taxes, with your tax rate depending on your taxable income bracket.
- You can legally reduce your crypto capital gains tax rate by holding your crypto for over 12 months before selling it and offsetting capital losses from your other gains.
- The easiest way to track all of your crypto portfolio, understand how each trade is taxed, and find out eligible coins for tax benefits is by using a crypto tax tool like CoinTracking.
What Tax Rate Do I Pay on My Cryptocurrency in Australia?
What is the tax rate on crypto? That’s not that straightforward, we need to look at the distinction between taxable events and how those impact your effective tax rate.
In Australia, the income tax rates will define how much you pay over your cryptocurrency gains and income, but there are different ways to calculate each one, and that will impact your taxable income and consequently your tax rate.
As a benchmark, you can expect your crypto tax rate to be between 0% and 45%, given the income tax brackets in Australia in 2025. Let’s look at the different tax rates for crypto gains and income.
All Crypto Investments at a Glance
Crypto Income vs. Capital Gain
In Australia, disposing of crypto, from trading to spending and gifting it, is a taxable event, subject to capital gains taxes. Investors have to calculate the gain/loss on each trade and then that profit will be added to their taxable income for the year and taxed according to the tax bracket they fall into. If investors hold their crypto for at least 12 months before selling it, only 50% of the gains in those trades count towards their taxable income.
With crypto income, investors need to determine the Fair Market Value (in AUD) at the time they receive it, and that will count towards their taxable income for the year and be taxed according to their respective bracket.
How Crypto Traders Are Taxed in Australia
Crypto traders are taxed according to their income tax bracket in Australia, but crypto transactions are calculated differently toward that taxable income.
Here is the Australian tax rate on crypto for 2025:
Crypto income is calculated according to the Fair Market Value (in AUD) when it is received, while crypto gains are calculated by deducting the cost basis of each trade from its sales proceeds. Those gains and income will count towards the total taxable income and be taxed according to the respective tax rate.
How to Calculate Your Crypto Taxes
To calculate your crypto taxes in Australia, you first need to identify which transactions are subject to capital gains and which ones are subject to income taxes.
For any disposal, from trading to selling, gifting, and spending crypto, here’s how to calculate crypto capital gains: sales proceeds minus cost basis. Every cryptocurrency you buy and sell has to follow this formula.
Example:
- Marie bought 1 ETH for AUD 3K on Date X.
- Then, she sold 1 ETH for AUD 4K on Date Y
- The gain in this trade will be AUD 1K: AUD 4K (sales proceeds) - AUD 3K (cost basis)
Whereas, crypto income is calculated differently. Here are some of the activities that fall under crypto income:
- Staking rewards
- Mining rewards
- Airdrops
- Hard forks
- Salaries or work compensation paid in crypto
Investors have to determine the Fair Market Value (in AUD) of any crypto asset at the time they received it and add it toward their taxable income for the tax year.
Tips to Reduce Your Crypto Taxes
Here’s how to legally reduce your crypto trading taxes in Australia:
- Hold crypto in the long-term: Holding crypto for more than 12 months before selling it enables you to get a 50% discount on your taxable capital gains, meaning only half of your profit will go towards your taxable income.
- Offset gains with losses: If you have capital losses, you can deduct them from other capital gains that year or carry forward those losses for when you have gains.
- Realize gains in low-income tax years: Realize capital gains in low income years will make you save taxes by being in a lower tax bracket overall and consequently face a lower tax rate for crypto.
Creating a Crypto Tax Return Made Easy
Conclusion – How to Stay Compliant and Pay Less Tax in Australia
The Australian crypto tax rate can widely change given several factors like the total taxable income of the household, and whether the investor qualifies for a capital gains tax benefit, etc.
As a benchmark, you can expect your crypto profits and income to be taxed at the maximum of 45%, the highest income tax bracket in Australia. But, there are many ways to legally lower your tax rate for crypto.
The easiest way to track your portfolio, find those tax-saving opportunities, and report your crypto taxes is automatically with a crypto tax calculator like CoinTracking.
Frequently Asked Questions about Crypto Tax Rates in Australia
What is the Tax Rate on Crypto Gains in Australia?
The tax rate on crypto gains in Australia will depend on your total taxable income in that tax season according to the official income tax brackets.
How Much Taxes Do I owe on Crypto Income in Australia?
In Australia, income tax rates range from 0% to 45% depending on your total taxable income (from crypto and non-crypto sources).
Can I Offset Crypto Losses to Pay Less Tax?
Yes, in Australia, you can offset your capital gains with other losses in that tax year or carry them forward, effectively reducing your crypto taxes.
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