If you buy and sell crypto in Australia, you’re required to pay crypto trading taxes. But how exactly does it work?
Don’t worry! Our Australian crypto trading taxes guide covers everything you need to know, from crypto day trading taxes to how to record crypto trades for the ATO.
Discover more about tracking your crypto automatically, calculate your crypto profits, and how to file your Australia crypto taxes, and more! Let’s go!
KEY TAKEAWAYS about Crypto Traders and Trading Taxes in Australia
- Crypto trading is taxed in Australia, with investors having to determine capital gains and add them to their taxable income, with rates reaching up to 45%;
- Crypto-to-FIAT, crypto-to-crypto trades, and spending crypto on products or services are considered taxable events in Australia;
- You can reduce your capital gains taxes by offsetting them with trading losses and by holding crypto for one year before selling;
- The easiest way for Australian investors to calculate gains/losses and report their crypto taxes in Australia is by using a crypto portfolio tracker like CoinTracking.
Do You Pay Taxes on Crypto Trading in Australia?
Yes, you have to pay capital gains tax when trading crypto, including crypto-to-crypto and crypto-to-FIAT trades. You have to determine the gains/losses on each trade and add those profits to your taxable income. These gains count toward your taxable income.
Your Crypto Portfolio Manager
Crypto Trader vs. Crypto Investor
In Australia, the tax code creates a distinction between a casual investor and a frequent trader. A casual investor is someone who buys crypto, holds it expecting a return, and sells it after a while or engages in other less frequent crypto activities. A crypto trader, on the other hand, is someone who buys and sells crypto frequently as part of a business activity. This classification is important because it directly impacts how your crypto income is taxed.
Crypto Trader
In Australia, a crypto trader is considered a professional who buys and sells cryptocurrency frequently or engages in activities like NFT trading, crypto mining or staking, etc. The Australian Taxation Office (ATO) considers a trader as a business, which means their income is taxed under different rules compared to casual investors.
Crypto Investor
According to the Australian Taxation Office (ATO), a crypto investor is someone who buys and holds cryptocurrency with the intention of making a long-term profit, rather than trading daily. This distinction is important due to the difference in taxation.
How Much Tax Do You Pay on Crypto Trading?
In Australia, the tax you pay on crypto depends on the type of activity and your income level. Capital gains from crypto trading are taxed according to your income tax bracket. To calculate these, you subtract the original purchase price (cost basis) from the sale proceeds. The resulting profit is then taxed at a rate between 0% and 45%, depending on your income.Income-generating activities — such as staking rewards, interest from crypto lending, or airdrops — are treated as regular income. You must determine their Fair Market Value in AUD at the time of receipt and include that amount in your total taxable income. Here are the tax rates in 2024/2025:
When Do You Have to Pay Taxes on Crypto Trading?
Crypto trading requires tracking key information about your crypto-activities to accurately calculate your crypto taxes each tax season. Here are the details you need to know:
Do You Pay Taxes on Every Crypto Trade?
Yes. You must calculate the gain or loss for every crypto trade you make. At the end of the tax year, you’ll add all your capital gains together and include the total in your taxable income. Your tax rate will then depend on the income bracket you fall into.
Taxable Trading Events
The following trade events are taxable in Australia under capital gains tax rules:
- Crypto-to-FIAT trades (e.g., converting crypto to AUD)
- Crypto-to-crypto transactions (e.g., converting Bitcoin to Ethereum)
- Crypto-to-stablecoins (e.g., converting Bitcoin to USDC)
- Crypto-to-NFTs (e.g., converting Bitcoin to a CryptoPunk)
- NFTs-to-crypto (e.g., converting a CryptoPunk to Bitcoin)
- Spending crypto on goods or services
- Gifting cryptocurrency
Non-Taxable Crypto Trading Events
Here are crypto-tax-free events in Australia:
- Buying crypto with FIAT (e.g., AUD)
- Buying NFTs with FIAT
- Transferring crypto between personal wallets
- Donating crypto to a qualified charity
- Purchasing a product with crypto when that asset is for personal use
Spot Trading Taxes in Australia
Trading cryptocurrency on spot (without leverage) is a taxable event in Australia, falling under capital gains. Let’s see how:
Crypto-to-Crypto Taxes
Crypto-to-crypto trades, like trading Bitcoin to Ethereum, are considered taxable events in Australia. Investors must calculate the capital gain or loss for each trade and report it as part of their annual capital gains tax obligations.
Crypto-to-Fiat Trading Taxes
Crypto-to-FIAT transactions, like converting Ethereum to AUD, are considered taxable events in Australia. As with crypto-to-crypto trades, investors must calculate the gain or loss (sales proceeds - cost basis) on each trade.
Margin Trading Taxes
Margin trading is taxed similarly to spot trading, even though investors can take more risk and profit with leveraged trading. Investors must calculate the gain or loss on each trade based on the difference between the sale price and the cost basis.
Taxes on Derivatives Trading in Australia
Derivatives trading is generally taxed under capital gains rules for investors. However, if you trade derivatives professionally or at scale, the Australian Taxation Office (ATO) may classify you as a business, which means your income will be taxed under business tax rules. Let’s take a look at how specific crypto derivatives are taxed in Australia for individuals:
Futures Trading Taxes
Crypto futures trading tax in Australia is generally treated the same as spot crypto trading if you’re classified as an investor. You must calculate the gain or loss on each trade, and report the total as part of your capital gains for the tax year.
Perpetual Trading Taxes
Perpetual trading is taxed similarly to futures and if you’re classified as an investor by the ATO, gains would be taxed under capital gains taxes.
Options Trading Taxes
Options trading is also subject to capital gains taxes for casual investors, with profits counting towards your taxable income.
How Do You Report Crypto Trading Taxes to the ATO?
The ATO requires crypto investors to keep track of detailed information about their trades. Here are the most common information you need to keep track of:
- Cost basis (Fair Market Value at purchase)
- Sales proceeds of trades
- Income and capital gains/losses
- Dates of acquisitions and sales
- Types of assets, wallet addresses, and purpose of the trade
To file taxes, you can use the ATO’s online service or submit them by paper forms.
All Crypto Investments at a Glance
How to Record Crypto Trades for Taxes
The easiest and most accurate way to track your gains, losses, and crypto income — including staking rewards and airdrops — is by using a specialized crypto tax tool like CoinTracking. It automatically calculates your taxes and generates a fully tax-compliant report based on Australian regulations.
How Can You Reduce Your Crypto Trading Taxes?
In Australia, there are several legal strategies to reduce your crypto trading taxes. Here are the most common ways to reduce or avoid crypto taxes:
- Hold crypto for at least 12 months before selling to become eligible for a 50% discount on your capital gains taxes;
- You can offset your capital gains from other losses than you may have;
- Buying crypto is not a taxable event;
- Donating crypto to qualified charitable organization is a tax-free event.
Crypto Trading Taxes in Other Countries
Let’s look at how other countries tax crypto trading:
Crypto Trading Taxes in the USA
Crypto trading in the US is taxed under capital gains taxes, with rates ranging from 0% to 20% depending if the trade is classified as short-term or long-term. Discover more about US crypto taxes in our guide.
Crypto Trading Taxes in the UK
In the UK, crypto trading is taxed as a capital gain once your total gains exceed the annual tax-free allowance. Discover the current threshold and how UK crypto taxes work in our guide.
Crypto Trading Taxes in Canada
Crypto trading is considered a taxable event in Canada, and is subject to capital gains taxes. However, only 50% of your capital gains are taxable. Read more in our Canada crypto tax guide.
Creating a Crypto Tax Return Made Easy
Conclusion about Crypto Trading Taxes in Australia
Crypto trading is subject to capital gains tax in Australia, with investor tax rates ranging from 0% to 45%, depending on income.
To stay compliant, Australian investors must calculate the gain or loss on every trade, report all capital gains correctly, and submit the necessary tax forms to the ATO.
The easiest, most efficient, and affordable way to automate this process is by using CoinTracking — your all-in-one crypto tax calculator trusted by over 1.2 million users worldwide.
Note: This article is for informational purposes only and does not constitute financial or tax advice. Always consult with a professional before making any decisions.
