How is cryptocurrency taxed in Australia?

In Australia, cryptocurrency is treated as property and not as currency. The ATO applies Capital Gains Tax (CGT) when you sell, swap, gift or spend crypto. If you're trading frequently or operating a crypto business, income tax rules may apply instead.

Do I need to report crypto-to-crypto trades in my tax return?

Yes. The ATO considers crypto-to-crypto trades as taxable events. You must calculate and report the capital gain or loss for each trade based on the market value in AUD at the time of the transaction.

Is income from staking or airdrops taxable?

Yes. Income from staking, airdrops, and yield farming is considered ordinary income and must be declared in your tax return. The value should be calculated in Australian dollars at the time you receive it.

Can I claim the personal use exemption for my crypto?

The personal use exemption is very limited. It only applies if the crypto was genuinely used to buy goods or services for personal use, and not held for investment, profit, or trading. The ATO scrutinises this closely.

What records do I need to keep for crypto tax reporting?

You need to keep records of all crypto transactions, including dates, AUD values at acquisition and disposal, wallet addresses, exchange details, income from staking or airdrops, and details of any gas fees or transfer costs. Records must be kept for at least five years.

Does the ATO track my crypto transactions?

Yes. The ATO receives data from Australian and international exchanges and can match transactions to your Tax File Number. It is important to declare all crypto activities to avoid penalties.

What happens if I make a loss on crypto?

Capital losses on crypto can be used to offset capital gains from other investments, such as shares or property. You cannot use crypto capital losses to reduce your ordinary income.

Crypto Tax Return Checklist Australia 2025

Hagar Lipa
Jun 15
3 min read

Updated: 6 days ago

Your Complete Guide to Crypto Tax Obligations, Deductions & ATO Compliance

As cryptocurrency investing grows in Australia, so does the attention from the ATO. Whether you're a casual trader, long-term holder, or NFT enthusiast, it's crucial to accurately report your crypto activity in your tax return. This 2025 checklist will help you prepare, record, and declare your crypto transactions correctly to stay compliant and avoid costly mistakes.

📌 1. Know How the ATO Classifies Crypto

✔️ Cryptocurrency is treated as property, not currency (CGT asset)

✔️ Capital Gains Tax (CGT) applies when you sell, swap, gift, or use crypto

✔️ Ordinary income rules apply if you're running a business or trading frequently

✔️ NFTs, DeFi, staking, and airdrops each have distinct tax implications

🔗 ATO Crypto Tax Guidance

📌 2. Gather All Relevant Crypto Records

✔️ Wallet addresses & exchange accounts

✔️ Dates of acquisition and disposal

✔️ AUD value at time of each transaction

✔️ Transfer history between personal wallets (for cost base tracking)

✔️ Records of mining, staking, and yield farming rewards

✔️ Details of forks, airdrops, and chain splits

💡 Pro tip: Use tools like Koinly, CoinTracking, or CryptoTaxCalculator to auto-import from exchanges and wallets.

📌 3. Classify Your Crypto Transactions

✔️ Capital gains/losses from selling, gifting, or swapping crypto

✔️ Income from mining, staking, DeFi, or being paid in crypto

✔️ Personal use exemption (strictly limited and rarely applies)

✔️ Business vs. investor: Are you running a crypto business? If yes, different rules apply

📎 You must record the purpose of each transaction for correct classification.

📌 4. Calculate Capital Gains or Losses

✔️ Sale price (AUD) minus cost base = Capital Gain or Loss

✔️ Include gas fees and transfer costs in your cost base

✔️ Crypto-to-crypto trades are taxable events

✔️ Capital losses can offset other capital gains (even outside crypto)

✔️ Held crypto over 12 months? You may qualify for the 50% CGT discount

📌 5. Report Crypto Correctly in Your Tax Return

✔️ Use myTax, your accountant, or your software to declare crypto:

Capital gains/losses in the "Capital Gains" section

Crypto income in the "Other Income" section

✔️ Include NFT, DeFi, and airdrop income

✔️ Retain your crypto records for at least 5 years

📌 Tip: The ATO receives data from exchanges and will match it to your TFN.

📌 6. Common Mistakes to Avoid

❌ Thinking crypto-to-crypto trades are tax-free

❌ Ignoring staking or DeFi income

❌ Not tracking transactions outside of exchanges (e.g. hardware wallets)

❌ Failing to report airdrops or NFTs

❌ Assuming "personal use" exemption applies automatically

✅ Stay transparent. The ATO uses data-matching technology and partners with major exchanges.

📌 7. When to Speak to a Crypto Tax Professional

✔️ Large or complex portfolios

✔️ Multiple wallets and exchanges

✔️ NFT activity and staking/yield farming

✔️ You received an ATO letter or audit notice

✔️ You're unsure if you're an investor or running a crypto business

🛡️ A tax professional can help optimise your deductions, ensure compliance, and respond to ATO queries.

📌 8. Plan Ahead for Future Years

✔️ Use crypto tax software year-round

✔️ Set aside tax for capital gains or income

✔️ Understand tax implications before using DeFi protocols

✔️ Explore tax structuring options for serious investors or businesses

✅ Conclusion:

Navigating crypto taxes in Australia doesn't have to be overwhelming. With this 2025 crypto tax checklist, you’ll be better prepared to accurately lodge your tax return, avoid ATO scrutiny, and stay on top of your crypto obligations. Remember — accurate records and proactive tax planning are the keys to staying compliant and reducing your crypto tax bill.

For a faster and paperless experience, clients can complete their tax return information using our secure online electronic checklist and data lodgement form. Simply visit Lynden Group’s Individual Tax Return Form to upload your documents, enter your details, and submit everything directly to your accountant—no printing or scanning required.

Or submit the form here

Crypto Tax Return Checklist Australia 2025

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