When you buy and sell crypto for a profit, you may need to pay capital gains tax (CGT) to the ATO.
Our crypto tax calculator is designed to simplify the estimation of your CGT and help you prepare your tax report.
For more complex tax calculations, you can compare calculators from our range of partners which have been reviewed for Australians based on cost, features and customer feedback.
Crypto Tax Calculator< Edit details
Important informationThis is a complex and novel tax area. The crypto tax calculator is provided as general information only and we recommend that you seek independent tax advice. The crypto tax calculator does not purport to be a complete statement of all Australian income tax implications that may be relevant to crypto transactions. The Australian income taxation implications may vary depending on the individual circumstances. We recommend obtaining personal and specific tax advice prior to the lodgement of your income tax return.
How to use the crypto tax calculator
Our cryptocurrency tax calculator is designed for a simple estimation of your capital gains tax (CGT).
It works by calculating the profit or loss from a trade and estimating the CGT tax owed.
You can add multiple trades and toggle whether or not you've held an asset for 12 months or more, which will apply the 50% CGT discount.
You may be eligible for the 50% CGT discount if you have held on to an asset for more than 12 months without disposing of it – which means you have not sold it, or swapped it for another cryptocurrency.
To use the calculator, follow these steps:
- Add each trade to a new row. A trade is when you have bought then sold an asset once.
- Add your purchase price for the asset in the Purchase Value (AUD) column and then the price you sold it for in the Sold value (AUD). If you held the asset for more than 12 months without disposing of it (eg, selling it, trading it, or swapping it for another asset) then you can toggle the switch which will apply the CGT discount for that trade.
- Add as many trades as you need.
- Once you have added all your trades, add your taxable income to the bottom left field. This should include your salary plus any other income, including capital gains from any other assets that were not added to the calculator.
- Press the green Calculate button. You will be shown an estimate of your capital gains and taxable capital gains.
What triggers a capital gains event?
A capital gains event occurs when you dispose of an asset such as cryptocurrency, and make a profit or loss. This applies to all crypto assets including coins, tokens, NFTs and stablecoins.
You will need to add a new row in the calculator for each capital gains event. So each time you buy then sell an asset, you will need to add it as a new row, even if you made a loss. It is important to record your losses because these offset your gains and may help you reduce your overall tax bill.
The Australian Taxation Office (ATO) now provides guidance on specific transactions that can lead to capital gains events.
It is important to keep records of all your crypto transactions and consult a tax professional if you are unsure about your tax obligations.
Example crypto tax calculation
|Event||Quantity||Purchase and sale price||Cost Base (Purchase Price × Quantity)||Capital Gain (Proceeds − Cost Base)||Capital Gains Tax Owed (At rate of 25%)|
Please note that this table provides a simplified example and does not take into account any deductions, exemptions, or other individual circumstances that may affect the capital gains tax calculation.
Difference between investors and traders when calculating crypto capital gains
If you're a professional crypto trader then your tax implications will be a bit different to an investor.
A trader is typically someone buying and selling crypto on a regular basis to generate income. If this sounds like you, then you may want to contact an accountant to better understand your tax obligations.
By and large, though, most crypto owners in Australia are considered investors and subject to capital gains tax.
What can I do if I have made a lot of trades?
Calculating your taxes can be challenging if you have made a large number of trades. Here are some practical steps you can take to start making sense of everything.
Collect your records. You can start by gathering all relevant records of your cryptocurrency trades. You can download a copy of your transaction history from most exchanges, which should provide you with key information like purchase price, sale price, quantity and time and date.
Use crypto tax software. To simplify the process of tracking and calculating your cryptocurrency trades, consider using dedicated crypto tax software. These affordable tools can help you consolidate your transaction history from multiple exchanges, calculate capital gains and losses, and generate tax reports. Popular options include Crypto Tax Calculator, Koinly and CoinTracking.
Consult a tax professional. If your records are starting to look complicated, then it might be time to consult a professional. A tax professional can guide you through the process, provide personalized advice based on your specific circumstances, and help ensure compliance with the ATO requirements.
Automated Cryptocurrency tax calculators
What happens if I made a loss?
If you have made a loss from your cryptocurrency investments during the financial year, there are a few steps you can take.
Carry forward the capital loss. In Australia, capital losses can be carried forward to future years to offset against capital gains you may make in those years. There is no time limit, which means this can be a powerful tool to reduce future tax bills, so make sure to keep a record of any losses.
Offset against other capital gains. If you have realized capital gains from other investments during the same financial year, you can use your cryptocurrency capital losses to offset those gains. This can help reduce your overall taxable capital gains and potentially lower your tax bill.
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