CGT on Crypto Assets: Who Qualifies and What You Get
Learn how capital gains tax works when you sell or trade crypto assets in Australia.
This scheme involves paying tax on the profit you make when you sell or trade digital assets.
Who it's for
This applies to individuals who dispose of crypto assets for a profit.
What you get
There is no direct benefit or payout; instead, this is a requirement to keep detailed records of every single transaction you make with your digital assets.
What it costs you
It is free to comply with the rules, but it requires a significant amount of your time to track and document every movement of your assets.
The catch to know
Many people do not realize that trading one type of cryptocurrency for another is considered a "disposal event." This means the tax obligation is triggered even if you do not move your funds back into traditional bank currency.
How to apply
- Keep a detailed log of every transaction, including the date and value.
- Track your "cost base," which is the amount you originally paid for the asset.
- Calculate your profit or loss on every disposal.
- Report these details when you file your annual tax return.