Cryptocurrency Taxation in Australia

Capital Gains Tax (CGT)

The most common way cryptocurrency is used is as an investment, in which case the cryptocurrency asset is subject to Capital Gains Tax (CGT).

If there is a CGT event, you may make either a capital gain or capital loss on the disposal of the cryptocurrency.

ATO Guidance

The Australian Taxation Office (ATO) has provided guidance that cryptocurrency is classified as a CGT asset in Australia.

Despite its name, cryptocurrency is treated as an asset rather than a currency.

Chain Split

If you receive a new cryptocurrency asset as a result of a chain split, you may also be subject to CGT.

Tax Implications

In most cases, tax does apply to every cryptocurrency activity, including:

• Buying and selling cryptocurrency
• Mining cryptocurrency
• Receiving cryptocurrency as a reward or payment