Crypto Tax
Capital Gains Tax on Crypto in Australia (2026 Guide)
How CGT applies to crypto in Australia in 2025-26: cost base rules, the 12-month discount with a worked example, SMSF and company rates, capital losses.
By
YCG Research Desk
Published
12 June 2026
Fact-checked & updated
12 June 2026
Capital gains tax on crypto in Australia is not a separate tax or a flat rate. The ATO treats crypto as a CGT asset: when you dispose of it, the net capital gain is added to your taxable income and taxed at your marginal rate, with a 50% discount available to individuals who held the asset for at least 12 months.
This page covers how the calculation works — cost base, the 12-month discount, how gains stack on top of salary, and how SMSF and company rates compare. It sits within our broader Australian crypto tax guide, which maps every ATO rule that applies to digital assets. Reporting steps are covered separately in how to declare crypto on your tax return, and lawful ways to reduce a bill in minimising crypto tax legally.
How CGT applies to crypto
The ATO classifies crypto assets as property and as CGT assets, not as foreign currency. For an investor, each disposal is a CGT event: you compare the capital proceeds (what you received, in Australian dollars) with the asset’s cost base (what it cost you, in Australian dollars). Proceeds above cost base produce a capital gain; proceeds below reduced cost base produce a capital loss.
A disposal is broader than selling for dollars. Each of the following is a CGT event, valued in AUD at the time it happens:
- Selling crypto for Australian dollars or another fiat currency.
- Swapping one crypto asset for another, including stablecoin conversions.
- Spending crypto on goods or services.
- Gifting crypto to another person.
- Converting crypto in many DeFi interactions, such as wrapping tokens or providing liquidity, where beneficial ownership changes.
Simply buying and holding, or moving crypto between wallets you own, is not a disposal. Income-like receipts — staking rewards, airdrops with value, interest from lending — are generally ordinary income at their market value when received, and that value then becomes the cost base of the new tokens for any later CGT calculation.
The ATO requires records of every transaction — date, AUD value, purpose and counterparty — kept for five years after the disposal. Exchanges operating in Australia report customer data to the ATO under its data-matching program, which is one reason a crypto tax calculator or software is widely used for high-volume traders.
Working out the cost base
The cost base is more than the purchase price. The ATO recognises five elements:
| Element | What it covers | Crypto examples |
|---|---|---|
| 1. Acquisition cost | Money paid for the asset | AUD purchase price, or market value of crypto given in a swap |
| 2. Incidental costs | Costs of buying and selling | Exchange trading fees, brokerage, transfer/network fees on acquisition or disposal |
| 3. Ownership costs | Costs of holding the asset | Interest on borrowings used to acquire it (cannot create or increase a capital loss) |
| 4. Capital costs | Spending that increases or preserves value | Rarely relevant to fungible tokens |
| 5. Title costs | Establishing or defending ownership | Legal costs to recover assets, in limited cases |
For most investors the practical effect is simple: purchase price plus buy-side and sell-side fees. A $10,000 purchase with a 1% trading fee has a cost base of $10,100, not $10,000 — small amounts that compound across many trades.
One narrow exemption exists: crypto acquired for $10,000 or less and kept mainly to buy items for personal consumption may qualify as a personal use asset, with gains disregarded. The ATO applies this narrowly — crypto held for any period as an investment does not qualify, and losses on personal use assets are also disregarded.
The 12-month CGT discount
Individuals (and trusts) who hold a CGT asset for at least 12 months before the CGT event can reduce the capital gain by 50%. Complying super funds, including SMSFs, receive a one-third discount. Companies receive no discount at all.
The 12 months runs from acquisition to disposal, excluding both end days. Each parcel of crypto carries its own acquisition date, so a holding built through regular purchases will have some parcels qualifying and others not at any given sale date.
Worked example
An investor on a 30% marginal rate buys crypto for $10,000 and sells it 13 months later for $18,000, with no other capital gains or losses in the year:
| Step | Amount |
|---|---|
| Capital proceeds | $18,000 |
| Less cost base | $10,000 |
| Gross capital gain | $8,000 |
| Less 50% CGT discount (held over 12 months) | −$4,000 |
| Net capital gain added to taxable income | $4,000 |
| Tax at 30% marginal rate | $1,200 |
| Medicare levy (2%) on the gain | $80 |
| Total tax on the gain | $1,280 |
Had the same investor sold at 11 months, no discount would apply: the full $8,000 would be taxable, producing $2,560 including Medicare levy — exactly double. The discount turns an effective 32% rate on this gain into 16%. Timing of a disposal around the 12-month mark is therefore one of the largest single variables in a crypto tax outcome, though holding longer also means longer exposure to price movements in a volatile asset class — the gain can shrink or disappear while you wait.
How gains stack on top of salary
The net capital gain is not taxed at a flat rate. It is added to your other assessable income, and the total is taxed through the resident brackets. For 2025-26 these are:
| Taxable income | Marginal rate (2025-26) |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| Over $190,000 | 45% |
Most residents also pay the 2% Medicare levy. Legislated cuts reduce the 16% rate to 15% from 1 July 2026 and to 14% from 1 July 2027.
Because the gain sits on top of salary, it is taxed at your highest applicable rates — and a large gain can spill into a higher bracket. Only the portion above the threshold is taxed at the higher rate. For example, a $130,000 salary plus an $8,000 non-discounted gain puts $5,000 of the gain at 30% and the final $3,000 at 37%. The bracket creep effect also flows into income-tested items such as the Medicare levy surcharge and Division 293 tax on super contributions for higher earners.
SMSF and company rates for contrast
The same $8,000 gross gain, held over 12 months, produces very different outcomes depending on the holding structure:
| Structure | Discount | Taxable gain | Rate | Tax payable |
|---|---|---|---|---|
| Individual, 30% marginal rate | 50% | $4,000 | 30% | $1,200 |
| Individual, 45% marginal rate | 50% | $4,000 | 45% | $1,800 |
| Complying SMSF, accumulation phase | One-third | $5,333 | 15% | $800 |
| Complying SMSF, retirement phase | n/a | Exempt (ECPI) | 0% | $0 |
| Company | None | $8,000 | 25% or 30% | $2,000–$2,400 |
Individual figures exclude the Medicare levy. A complying SMSF in accumulation phase pays an effective 10% on discounted gains, and assets supporting a retirement-phase pension can generate exempt current pension income taxed at nil. Non-complying funds and non-arm’s length income are taxed at 45%.
The lower headline rates inside super come with substantial obligations and costs: the sole purpose test, annual independent audits, valuation requirements and trustee penalties, covered in our guide to SMSF crypto rules, tax and audit requirements. Establishing an SMSF or moving super into crypto is a financial decision that only a licensed financial adviser can recommend — nothing here is a suggestion to do so. Companies, for their part, pay 25% (base rate entities under $50 million aggregated turnover, with passive income limits) or 30%, receive no discount, and shareholder access to profits triggers further tax considerations.
Capital losses
Crypto capital losses follow the general CGT loss rules:
- Losses offset capital gains only — never salary, business or other ordinary income.
- Current-year losses are applied to gains before the CGT discount is calculated, reducing the gross gain dollar for dollar.
- The ATO lets you choose which gains to offset first; applying losses against non-discounted (short-held) gains preserves more of the 50% discount on long-held gains.
- Unused net losses carry forward indefinitely, but only against future capital gains, and must be applied in the order they arose.
A loss is only realised on disposal — a holding that has fallen in value produces no deduction until a CGT event occurs. The ATO has also warned against wash sales, where an asset is sold and rapidly repurchased mainly to crystallise a loss; Part IVA anti-avoidance rules can deny such losses.
The 50% discount may change from 1 July 2027
The 2026-27 Federal Budget proposes the most significant CGT change in a generation: replacing the 50% discount with cost base indexation for inflation, alongside a minimum 30% tax on gains, from 1 July 2027. The reforms are drafted to apply only to gains arising after 1 July 2027, with previously accrued gains retaining existing treatment, and Budget materials indicate current settings continue for super funds and companies.
Bills were introduced into Parliament on 28 May 2026 but had not passed as at the time of writing (June 2026). Until legislation is enacted, the rules described on this page remain current. Investors with large unrealised gains face genuinely different outcomes under the two regimes, which is a matter for personal advice from a registered tax agent — our directory of crypto-experienced tax accountants lists practitioners who work with digital asset clients, and the Tax Practitioners Board register (tpb.gov.au) verifies any agent’s registration.
Everything above is general information based on ATO guidance current at June 2026, not tax advice. How these rules apply depends on individual circumstances — residency, investor versus trader status, and transaction history all change the answer.
Common questions
Frequently asked questions
How much capital gains tax do I pay on crypto in Australia?
There is no separate crypto tax rate. Your net capital gain is added to your taxable income and taxed at your marginal rate, which for 2025-26 ranges from 16% to 45% plus the 2% Medicare levy for most residents. If you held the asset for at least 12 months, individuals can reduce the gain by 50% before it is taxed.
What is the crypto tax rate in Australia?
Australia taxes crypto gains as part of ordinary taxable income, so the rate depends on who holds the asset. Individuals pay marginal rates of 16% to 45% for 2025-26. Complying SMSFs pay 15% in accumulation phase, reduced to an effective 10% on assets held over 12 months. Companies pay 25% or 30% with no CGT discount.
Do I still pay CGT if I hold crypto for more than 12 months?
Yes. Holding for more than 12 months does not exempt the gain. It entitles an individual to the 50% CGT discount, which halves the gain before it is added to taxable income. The 12 months is measured from acquisition to the CGT event, excluding both the acquisition and disposal days, so in practice many investors count 12 months and 2 days.
Is swapping one cryptocurrency for another a CGT event?
Yes. The ATO treats a crypto-to-crypto swap as a disposal of the first asset at its market value in Australian dollars at the time of the trade, even though no cash is received. The same applies to spending crypto on goods or services and to gifting it. Each swap must be recorded with its AUD value at the time.
Can crypto losses reduce the tax on my salary?
No. Capital losses can only be offset against capital gains, in the current year or carried forward indefinitely against future capital gains. They cannot reduce salary, business or other ordinary income. Losses are applied before the CGT discount, so a loss reduces the gross gain dollar for dollar before any 50% reduction is calculated.
What can I include in the cost base of my crypto?
The cost base starts with what you paid for the asset in Australian dollars, plus incidental costs of buying and selling such as exchange and brokerage fees and transfer fees. Certain ownership and capital costs can also be included under the ATO's five cost base elements, though ownership costs cannot be used to create or increase a capital loss.
Is the 50% CGT discount changing?
Possibly. The 2026-27 Federal Budget proposes replacing the 50% discount with an inflation-based cost base indexation and a minimum 30% tax on gains from 1 July 2027, applying only to gains arising after that date. Bills were introduced into Parliament on 28 May 2026 but had not become law as at June 2026, so current rules still apply.
Sources & further reading