Cryptocurrency Free Resources
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We have some handy guides to help you find out what your obligations might be.
Cryptocurrency: Is It Taxable?
The following table assumes that you meet the ATO’s definition of an “investor”:
Using fiat (AUD) to purchase cryptocurrency
Taxable Event
No
How is it Taxed?
N/A
Exchanging one cryptocurrency for another
Taxable Event
Yes
How is it Taxed?
Capital Gains
Receiving crypto airdrops or giveaways
Taxable Event
Yes
How is it Taxed?
Ordinary Income
Holding crypto as its market value increases
Taxable Event
No
How is it Taxed?
N/A
Moving crypto from one wallet to another
Taxable Event
No
How is it Taxed?
N/A
Using crypto to purchase: NFTs, other goods and services
Taxable Event
Yes
How is it Taxed?
Capital Gains
NFT: Is It Taxable?
Using fiat (AUD) to purchase an NFT
Taxable Event
No
How is it Taxed?
N/A
Using cryptocurrency to purchase an NFT
Taxable Event
Yes
How is it Taxed?
Capital Gains
Selling an NFT you previously purchased
Taxable Event
Yes
How is it Taxed?
Capital Gains
Holding an NFT as its market value/floor price increases
Taxable Event
No
How is it Taxed?
N/A
Selling an NFT you created
Taxable Event
Yes
How is it Taxed?
Ordinary Income
Receiving an NFT via airdrop or giveaway
Taxable Event
Potentially
How is it Taxed?
It Depends
Taxable Event
How is it Taxed?
This chart is based on the current ATO guidance for the Australian residents for tax purpose as of December 5th, 2021 and is subject to change.
Crypto Mining: Is It Taxable?
Reward tokens received for mining
Taxable Event
Yes
How is it Taxed?
Ordinary Income
Exchanging reward tokens for another crypto
Taxable Event
Yes
How is it Taxed?
Capital Gains
Exchanging reward tokens for fiat (AUD)
Taxable Event
Yes
How is it Taxed?
Capital Gains
Holding reward tokens as its market value increases
Taxable Event
No
How is it Taxed?
N/A
Moving tokens from one wallet to another
Taxable Event
No
How is it Taxed?
N/A
Using tokens to purchase: NFTs, other goods and services
Taxable Event
Yes
How is it Taxed?
Capital Gains
NFT Creators: Is It Taxable?
Crypto received from NFT sales
Taxable Event
Yes
How is it Taxed?
Ordinary Income
Exchanging crypto earned from sales for another crypto
Taxable Event
Yes
How is it Taxed?
Capital Gains
Exchanging crypto earned from sales for fiat (AUD)
Taxable Event
Yes
How is it Taxed?
Capital Gains
Holding crypto earned from sales as its market value increases
Taxable Event
No
How is it Taxed?
N/A
Making business purchases using crypto
Taxable Event
Yes
How is it Taxed?
Capital Gains
Paying employees/contractors in crypto
Taxable Event
Yes
How is it Taxed?
Capital Gains
Types of Crypto Assets
Types
Currency
Platform / Utility Token
Stablecoins
Non-Fungible Tokens (NFTs)
Examples
Bitcoin
Ethereum
Tether, USD Coin, DAI
Crypto Punks, BAYC, ZenApe
Types of Taxable Income
Disposal of Crypto
Types of Income
Capital Gain
Associated Expenses
Cost base
Mining
Types of Income
Ordinary Income
Associated Expenses
Deductible
Staking
Types of Income
Ordinary Income
Associated Expenses
Deductible
Crowdloans
Types of Income
Ordinary Income
Associated Expenses
Deductible
Yield Farming
Types of Income
Ordinary Income
Associated Expenses
Deductible
Airdrops
Types of Income
Ordinary Income
Associated Expenses
Deductible
Forks
Types of Income
*Depends
Associated Expenses
*Depends
As of 15 December 2021, for people who do not have the trader status
*Forks – For investor, new holdings at $0 cost base. Trader, subject to the trading stock rules.
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