Australian crypto CGT 2026: calculate capital gains step by step

Australian investors generally treat cryptocurrency as a CGT asset. Selling for Australian dollars, swapping one token for another, spending crypto or gifting it can trigger a CGT event. The calculation is not simply “cash received minus cash deposited”: it requires an AUD value for every disposal, an evidence-based cost base, the correct capital-loss sequence and a separate check for the 12-month CGT discount. This guide follows current Australian Taxation Office material and explains where the narrow personal-use exception, business activity, staking and derivatives require a different path.

Step 1: identify every crypto CGT event

The ATO treats crypto held as an investment as a CGT asset. A disposal can occur when you sell it for fiat, exchange it for another crypto asset, use it to buy goods or services, give it away or otherwise change ownership. The token surrendered is the asset being disposed of; the fact that no Australian dollars entered a bank account does not make a crypto-to-crypto trade invisible.

Start with a complete transaction inventory, not the exchange's “realised P&L” column. Exchange figures may omit other wallets, use a different cost method or report derivatives alongside spot assets. The Australian crypto tax overview explains the investor and business split.

Step 2: calculate proceeds and cost base in AUD

For each disposal, calculate capital proceeds in Australian dollars. When you receive another crypto asset rather than cash, use a supportable AUD market value at the transaction time. Record the exchange rate or price source, timestamp and calculation. A USD or USDT figure is not an Australian tax value until it is converted consistently to AUD.

The cost base generally begins with the money or market value given to acquire the asset and can include incidental acquisition and disposal costs that satisfy the CGT rules. Crypto exchange fees and blockchain fees must be allocated to the relevant transaction and included once. Do not subtract a fee from proceeds and also add the same fee to cost base.

Identification matters where units of the same token were acquired at different times and prices. The report must use a supportable lot allocation and maintain it consistently. Australia does not turn every portfolio into one universal “average cost” pool merely because an exchange dashboard displays an average entry price. The tax record needs the actual acquisition history for the units disposed of.

If acquisition data are missing, label the line not computable or requiring reconciliation. A zero placeholder must not be represented as a confirmed cost base. Obtain historical exchange statements, wallet records, bank evidence or an opening-balance reconstruction before finalising.

Step 3: calculate each capital gain or loss

At a basic level, a capital gain is capital proceeds less cost base. A capital loss generally arises where the reduced cost base exceeds the proceeds. The exact CGT rules include market-value substitutions and special cases, so gifts, related-party transfers and compensation should not be forced through a simple cash formula without review.

Worked example

Assume an Australian resident investor buys 0.5 BTC for AUD 20,000 and pays an AUD 100 acquisition fee. The documented cost base is AUD 20,100. Eighteen months later, the investor exchanges that 0.5 BTC for ETH worth AUD 32,000 and incurs an AUD 150 disposal fee that is properly included in the calculation. Using proceeds of AUD 31,850 for this simplified example, the initial capital gain is AUD 11,750.

The ETH received starts with an acquisition record based on the same transaction value under the applicable rules. If the investor later sells the ETH, that later sale is a second CGT event. Recording only the final cash withdrawal would miss the earlier BTC disposal and corrupt the ETH basis.

• Proceeds: AUD 32,000 less AUD 150 selling cost in this simplified presentation = AUD 31,850.
• BTC cost base: AUD 20,000 plus AUD 100 acquisition cost = AUD 20,100.
• Capital gain before losses and discount: AUD 11,750.
• Holding period: more than 12 months, so the discount method may be available to an eligible individual.

Step 4: apply capital losses before the CGT discount

Capital losses can offset capital gains, but they cannot generally be deducted from salary or ordinary reward income. Unused net capital losses may be carried forward subject to the rules and records. Apply current-year and carried-forward losses in the statutory calculation before applying an available CGT discount. The loss-selection strategy can affect how much discount remains, so the calculation should retain each gain's eligibility rather than reducing everything to one early net number.

Eligible Australian resident individuals may generally use the 50% CGT discount for assets owned for at least 12 months. “At least 12 months” is not the same as 365 days in every date calculation, and the acquisition and disposal days are handled under the ATO timing rule. Companies do not receive the individual 50% discount, and a crypto trading business using revenue-account treatment does not simply apply the investor discount to trading stock profit.

In the simplified example, if no capital losses apply and the investor satisfies all discount conditions, the AUD 11,750 gain may produce an AUD 5,875 discounted capital gain. This is not the tax payable. The net capital gain is included in assessable income and the final tax depends on the full return.

See the dedicated Australian crypto-loss guide before selling merely to create a loss; the ATO can scrutinise wash-sale arrangements designed to obtain an artificial tax benefit.

Step 5: separate personal use, business and income events

The personal-use asset exception is narrow. The ATO focuses on the main actual use of the crypto when it is disposed of, not merely what the buyer originally intended. Crypto acquired and used quickly to buy personal consumption may qualify in the right facts. Crypto held as an investment, used for profit-making activity or kept for a long period while its value changes is unlikely to be personal use.

The often-repeated AUD 10,000 statement is not a general tax-free threshold for crypto gains. It concerns the acquisition cost of a personal-use asset under the exemption conditions. A portfolio worth less than AUD 10,000 is not automatically exempt, and a profit under AUD 10,000 is not automatically ignored. Capital losses from personal-use assets are disregarded.

Frequent, organised and commercially conducted trading may be a business rather than investment. Then crypto can be trading stock and ordinary-income principles apply. Frequency alone is not conclusive: purpose, repetition, organisation, business plan, record keeping and scale all matter. Use the trading-versus-investing guide to document the factual profile.

Staking rewards, airdrops, mining, salary paid in crypto, DeFi yields and derivatives must be separated from investor spot disposals. A receipt can be ordinary income and create cost base for a later CGT disposal. Futures and perpetual P&L should remain in a separate schedule until the contract and taxpayer activity establish the correct treatment; they are not automatically eligible for the 50% discount.

Step 6: report through myTax and keep the evidence

The ATO expects records for each transaction, including the date, purpose, counterparty or crypto address, exchange records, AUD value and what the transaction concerned. Keep wallet addresses and keys or other ownership evidence, plus records of acquisition and disposal costs. The ATO recommends regularly exporting records from exchanges because accounts and data access can disappear.

For CGT reporting, retain the full disposal schedule that supports the totals entered in the tax return. A useful workpaper contains asset, quantity, acquisition date, disposal date, proceeds, cost base, gain or loss, holding period, discount eligibility and source references. Keep records for at least five years from the relevant later time specified by the ATO; carried-forward losses and assets held longer can extend the practical retention period.

1. Reconcile opening quantity plus acquisitions minus disposals to closing quantity.
2. Convert every taxable event to AUD using a documented source.
3. Separate ordinary income, spot CGT, business activity and derivatives.
4. Apply capital losses before any eligible discount.
5. Review personal-use claims individually.
6. Transfer only final totals to myTax and retain the detailed schedule.

The Australian filing guide shows the return workflow, while the report remains supporting documentation rather than a substitute for the complete tax return.

Frequently asked questions

Official ATO sources

• ATO: acquiring and disposing of crypto assets
• ATO: calculating capital gains tax
• ATO: keeping crypto records
• ATO: crypto tax myth-busting transcript

Official-source review completed 1 September 2026. This guide is general information and does not calculate an individual's final tax liability.

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.