Do I pay capital gains tax on crypto in Australia 2026?
Yes, you generally pay Capital Gains Tax (CGT) on cryptocurrency in Australia for 2026. The Australian Taxation Office (ATO) treats most disposals of crypto as CGT events, unless it qualifies as a personal use asset or you're operating a crypto business.
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How it works in practice
Cryptocurrency as Property
The Australian Taxation Office (ATO) considers cryptocurrency as a form of property for tax purposes, not as money. This means that when you dispose of your cryptocurrency, it typically triggers a Capital Gains Tax (CGT) event. A disposal event includes selling, trading, gifting, or exchanging one cryptocurrency for another, or using it to pay for goods and services.
Calculating Capital Gains
Your capital gain is calculated as the difference between the capital proceeds (what you receive for the crypto) and its cost base (what you paid for it, plus certain incidental costs). If you hold cryptocurrency for more than 12 months before disposing of it, you may be eligible for the 50% CGT discount, which reduces your assessable capital gain. It's crucial to keep detailed records of all your cryptocurrency transactions to accurately calculate your gains or losses.
Important exceptions
The main exception to CGT for cryptocurrency in Australia is the personal use asset exemption. If you acquire cryptocurrency primarily for personal use and consumption, such as buying NFTs for your personal collection, and it's not held for investment or profit-making, any gain you make on its disposal may be exempt from CGT. However, this exemption doesn't apply to losses.
Additionally, if you are deemed to be carrying on a cryptocurrency business, your crypto activities might be treated as trading stock, subject to income tax rules rather than CGT.
What you should do now
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Keep meticulous records of all cryptocurrency transactions, including dates, amounts, and purposes.
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Understand if your crypto holdings are considered personal use assets or investments for tax purposes.
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Calculate your capital gains or losses for each disposal event to prepare for tax time.
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Seek professional tax advice if you are actively trading or have complex cryptocurrency transactions.
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Declare all relevant crypto gains or losses in your annual Australian tax return to the ATO.
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