According to ATO articles crypto currency can be subject either to CGT or business income.

1. Determine the nature of the activity

  • Investor / Capital Gains Tax (CGT): If the client is holding crypto as an investment, gains or losses are reported under CGT 

  • Trader / Business Income: If the client is actively trading or operating a crypto-related business, profits are treated as ordinary income and expenses can be claimed.

2. Records to keep

  • Dates of each transaction

  • Type of crypto and quantity

  • Value in AUD at the time of transaction

  • Purpose of the transaction (buy/sell/exchange/use)

  • Transaction fees

3. Reporting in the tax return

  • CGT events → Report under the Capital gains section > Other CGT Events

  • Business income → Report under Business or professional items.

4. Reference ATO guidance