Australia Crypto Tax Rates (2025)

What tax rate do I pay on my cryptocurrency in Australia? 

The tax rate you pay on your capital gains and ordinary income varies based on your income bracket. Here are Australia’s tax rates for the 2024-2025 financial year.

Long-term capital gains: In Australia, income from disposing of cryptocurrency held longer than 12 months is eligible for a 50% discount. That means that only half of your capital gain will be considered taxable income. 

Want to calculate your crypto tax bill? Check out our Australian crypto tax calculator.

Do I pay the same tax rate on all of my income? 

It’s important to remember that you won’t pay the same flat tax rate on all of your income. Instead, you’ll pay the marginal tax rate based on each income tax threshold. 

For example, let’s imagine that you made $25,000 in income in a given financial year. Here’s how much tax you’ll pay on each individual portion of your income. 

What tax rates do traders pay on cryptocurrency? 

The vast majority of Australians who buy and sell crypto are considered investors. However, if you’re buying and selling cryptocurrency in what the ATO calls an ‘organized, business manner’, you may be considered a trader. 

How are traders taxed?: If you’re considered a trader, you will pay the same tax rates on cryptocurrency outlined above. However, you will not be eligible for the capital gains discount for cryptocurrency disposed of after 12 months. 

Is there a tax advantage to being a trader?: A ‘trader’ can write off related expenses — such as internet service provider fees. Meanwhile, investors are not allowed to write off these expenses. 

The line between a trader and an investor can be fuzzy. If you’re unsure which category you fall into, check out the ATO’s guidelines on this topic.

How is cryptocurrency taxed in Australia? 

In Australia, cryptocurrency is subject to capital gains and ordinary income tax. 

Capital gains tax: When you dispose of cryptocurrency, you’ll incur capital gains or capital losses. Examples include selling your cryptocurrency or trading it for other digital assets. 

Ordinary income tax: When you earn cryptocurrency, you’ll recognize ordinary income. Examples include earning airdrops and staking rewards. 

For more information, check out our comprehensive guide to how cryptocurrency is taxed in Australia. 

How can I reduce my crypto tax rate?

There are strategies that can help you legally avoid your cryptocurrency taxes. For example, tax-loss selling — the practice of intentionally selling your cryptocurrency at a loss for tax purposes — can offset your capital gains and reduce your tax liability.

If you have a net capital loss for the year, it can be carried forward indefinitely into future tax years. 

Before you get started with tax-loss selling, it’s important to keep in mind the wash sale rule. The ATO does not allow investors to claim capital losses on crypto and other assets if they buy the same position shortly afterwards.

While the ATO does not specify a specific time period for when the wash sale rule applies, it’s important to remember that this rule is meant to discourage investors from selling assets and buying back in for the sole purpose of claiming tax benefits. 

Lodge your cryptocurrency taxes today

Want to get started lodging your cryptocurrency taxes? Try CoinLedger — the #1 crypto tax software for Australia. More than 700,000 investors around the world use the platform to report their crypto taxes in minutes. 

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