Crypto Tax and Accounting in Australia: What Every Trader Needs to Know

Cryptocurrency is no longer niche, it’s mainstream. Millions of Australians now buy, sell, stake, and trade digital assets every year. But with opportunity comes complexity, and nowhere is that truer than in crypto tax and accounting.

At The Tax Accountant, we specialise in helping crypto investors, traders, and businesses stay compliant with the ATO’s crypto tax rules while also ensuring you don’t pay a dollar more tax than you need to.

Do You Have to Pay Tax on Crypto in Australia?

Yes, under Australian tax law, cryptocurrency is treated as property, not currency.

That means:

• Capital Gains Tax (CGT): If you sell, trade, swap, or gift crypto, you may trigger a CGT event.

• Income Tax: If you earn crypto from mining, staking, airdrops, or as payment for services, it may be treated as ordinary income.

• Record Keeping: The ATO requires detailed records of every crypto transaction, dates, values in AUD, wallets, and exchanges used.

  
  

The problem? For most traders, this quickly adds up to thousands of transactions across multiple wallets and exchanges.

Common Crypto Tax Mistakes We See

At The Tax Accountant, we review hundreds of crypto tax returns each year. Some of the most common mistakes include:

1. Not declaring trades between coins (e.g., swapping ETH for BTC is taxable).

2. Forgetting about DeFi, staking, or NFTs—all of which can create taxable events.

3. Poor record-keeping, especially when using offline wallets or multiple exchanges.

4. Relying on generic software that doesn’t reconcile properly with ATO requirements.

5. Failing to use carry-forward losses to offset future gains.

   
   

Even one mistake can trigger an ATO audit and crypto audits are increasing every year.

How to Reduce Your Crypto Tax Bill

The good news? With the right strategy, you can legally minimise your crypto tax in Australia. Some of the methods include:

• Tax-loss harvesting: Selling assets at a loss to offset gains.

• Structuring through entities (companies, trusts, SMSFs) for better tax outcomes.

• Long-term holding: Assets held for 12+ months may qualify for the 50% CGT discount.

• Claiming deductions for trading expenses, software, and professional fees.

  
  

The key is planning. Crypto tax shouldn’t just be a once-a-year scramble, it should be part of your ongoing wealth strategy.

Why Work With a Specialist Crypto Tax Accountant?

Not every accountant understands crypto. We do. At The Tax Accountant:

• We work with individual traders, miners, NFT creators, and crypto businesses.

• We support Koinly, CoinTracking, and API-based wallets to simplify your reporting.

• We provide ATO-compliant reports that stand up under audit.

• We design tax-efficient structures for serious traders and investors.

  
  

Most importantly, we speak your language. Whether you’re yield farming on DeFi, minting NFTs, or running a DAO, we know how the tax rules apply.

Ready to Take Control of Your Crypto Tax?

Don’t leave your crypto tax and accounting to chance. The ATO is watching closely, and the penalties for mistakes can be severe.

At The Tax Accountant, we’ll help you:

• Accurately calculate your crypto tax

• Minimise your tax liability

• Stay compliant with the ATO

• Build a smart structure for long-term wealth

👉 Book a free 15-minute consultation today and get peace of mind knowing your crypto taxes are handled by experts.