au-crypto-tax

Files (1)

• SKILL.md

SKILL.md (first lines)

# AU Crypto Tax

## Australia Crypto Tax -- CGT & Income Skill v1.3

## Section 1 -- Quick Reference

**Quick Reference**

**Quick Reference**

| Field | Value |
| --- | --- |
| Country | Australia (Commonwealth of Australia) |
| Tax | Income Tax -- Cryptocurrency / Digital Assets |
| Currency | AUD (all gains/income must be reported in AUD) |
| Tax year | 2026-27 (1 July 2026 -- 30 June 2027) |
| Primary legislation | Income Tax Assessment Act 1997, Div 104 (CGT events), Div 118 (exemptions) |
| Supporting guidance | ATO crypto asset investments guidance; TD 2014/26 (Bitcoin as a CGT asset); TR 2026/D1 (airdrops, draft); TD 2026/D2 (wrapping, draft); ATO DeFi and wrapping guidance |
| Tax authority | Australian Taxation Office (ATO) |
| Filing portal | myTax / tax agent lodgement |
| Filing deadline | 31 October (self-lodgement); agent-managed deadlines vary |
| Skill version | 1.3 |

### Core Principle

The ATO treats cryptocurrency (including Bitcoin, Ethereum, stablecoins, NFTs, and DeFi tokens) as a **CGT asset**, not as foreign currency. Each disposal triggers a CGT event.

### Individual Marginal Tax Rates (2026-27)

**Individual Marginal Tax Rates (2026-27)**

| Taxable Income (AUD) | Rate |
| --- | --- |
| 0 -- 18,200 | 0% |
| 18,201 -- 45,000 | 15% |
| 45,001 -- 135,000 | 30% |
| 135,001 -- 190,000 | 37% |
| 190,001+ | 45% |

- **Rate scale by year** — The second resident bracket is 15 cents from 1 July 2026 and was 16 cents in 2024-25 and 2025-26; add the 2% Medicare levy. Non-residents have no tax-free threshold and no discount. From 1 July 2027 the 50% discount gives way to cost base indexation with a 30% minimum rate on gains accruing after that date (see 2.3).  _([ATO, Tax rates: Australian resident](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents))_

### Key Thresholds

**Key Thresholds**

| Item | Value |
| --- | --- |
| Personal use asset exemption | Acquisition cost < $10,000 |
| CGT discount (held 12+ months) | 50% for individuals and trusts |
| CGT discount -- companies | Not available |
| Capital loss carry forward | Indefinite (offset against future capital gains only) |

### Conservative Defaults

**Conservative Defaults**

| Ambiguity | Default |
| --- | --- |
| Unknown acquisition date | No 50% discount available |
| Unknown cost base | $0 (maximum gain) -- obtain records |
| Unknown whether personal use or investment | Treat as investment (CGT applies) |
| Unknown whether trading or investing | Treat as investor (CGT, not ordinary income) |
| DeFi event -- unknown character | Treat as disposal (CGT event) |

## Section 2 -- Classification Rules

### 2.1 CGT Events (Disposals)

**CGT Events (Disposals)**

| Event | CGT Triggered? |
| --- | --- |
| Sell crypto for AUD (or fiat) | Yes |
| Trade one crypto for another (e.g., BTC → ETH) | Yes -- disposal of BTC at market value |
| Use crypto to purchase goods/services | Yes -- disposal at market value |
| Gift crypto to another person | Yes -- market value at time of gift |
| Send crypto to an exchange for sale | No (transfer to own wallet is not disposal) |
| Transfer between own wallets | No -- same beneficial ownership |
| Lost/stolen crypto (no private key) | Possible CGT event -- must demonstrate irrecoverability |

A CGT event occurs when you:

### 2.2 Cost Base Calculation

**Cost Base Calculation**

| Element | Included in Cost Base |
| --- | --- |
| Purchase price in AUD | Yes |
| Exchange fees / commission on acquisition | Yes |
| Gas fees on acquisition transaction | Yes |
| Exchange fees / commission on disposal | Reduces capital proceeds (or included in cost base of new asset in swap) |
| Wallet transfer fees (own wallets) | Included in cost base of the asset |
| Subscription to portfolio tracking tool | Included (third element -- ownership costs) |

- **Method for identical assets** — FIFO, LIFO, or specific identification -- must be consistent and documented. ATO does not mandate a method but requires consistency.
- **Fees and missing parcel records** — Classify each fee by the transaction it belongs to: a fee on acquisition enters the cost base of that asset, a fee on disposal is an incidental cost of that event, and a network fee is not automatically deductible or an addition to every asset's cost base. Where a parcel or acquisition record is missing, investigate exchange exports, wallet history and bank transfers before falling back to the $0 conservative default.  _([ATO, Transactions: acquiring and disposing of crypto assets](https://www.ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investments/transactions-acquiring-and-disposing-of-crypto-assets))_

### 2.3 50% CGT Discount

Available if:
- The asset was held for at least 12 months (acquisition to disposal)
- The taxpayer is an individual or trust (not a company or super fund at 1/3 discount)
- The taxpayer is an Australian tax resident at the time of the CGT event
- **Events from 1 July 2027** — The 50% discount applies to eligible events before 1 July 2027. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 replaces it with cost base indexation and a 30% minimum rate for gains accruing after that date; apply the enacted transitional rules to later events. See `au-capital-gains.md`.  _([Treasury Laws Amendment (Tax Reform No. 1) Act 2026](https://www.legislation.gov.au/C2026A00049/asmade/text))_

### 2.4 Personal Use Asset Exemption

**Personal Use Asset Exemption Conditions**

| Condition | All Must Be Met |
| --- | --- |
| Acquired for personal use (e.g., to purchase goods) | Yes |
| Acquisition cost < $10,000 | Yes |
| Used within a short time of acquisition | Yes |
| NOT held as an investment | Yes |
| NOT held for exchange/trading purposes | Yes |

- **Exemption failure conditions** — If ANY acquisition cost ≥ $10,000, the personal use asset exemption does NOT apply. If crypto is kept on an exchange or held for extended periods, the ATO considers it an investment -- NOT personal use.

From openaccountants/openaccountants, AGPL-3.0.

More from openaccountants/openaccountants