crypto tax

Last Updated on February 22, 2024 by Nasir Hanif

Cryptocurrencies have recently become a popular investment option among Australians, with over 25% owning digital assets. However, with the rising popularity of cryptocurrencies comes the need to understand their tax implications. This article will delve into the taxation system on digital assets in Australia and provide you with the latest statistics.

Understanding the Taxation System on Digital Assets in Australia

Cryptocurrencies are treated as assets for tax purposes in Australia, and they are subject to capital gains tax (CGT) if they are sold or traded for a profit. The CGT applies to individuals, businesses, and investors who hold cryptocurrency as an investment or for personal use.

If you hold cryptocurrencies for less than 12 months, you will be taxed at your marginal tax rate on any capital gains you make. If you hold cryptocurrencies for more than 12 months, you will be eligible for a 50% CGT discount on any capital gains you make.

Crypto Tax Statistics in Australia

According to the Australian Taxation Office (ATO), more than 600,000 taxpayers reported a capital gain or loss on cryptocurrency investments during the 2020-2021 financial year. This significantly increased from the previous year, when only 400,000 taxpayers reported cryptocurrency gains or losses.

Moreover, the ATO has estimated that there are over 600,000 taxpayers who own cryptocurrency but have not disclosed it in their tax returns. The ATO has warned these taxpayers to ensure they are meeting their crypto tax obligations.

Tax Reporting Obligations for Australian Cryptocurrency Holders

Cryptocurrencies have garnered significant attention among Australians, prompting a surge in ownership with over a quarter of the population now invested in digital assets. Amid this burgeoning interest, understanding the tax implications surrounding cryptocurrencies becomes paramount. Australian tax authorities require individuals, businesses, and investors to adhere to specific reporting obligations, particularly concerning capital gains tax (CGT) on cryptocurrency transactions. Failure to comply can result in penalties and legal repercussions. This section will explore the tax reporting obligations for cryptocurrency holders in Australia, shedding light on crucial considerations for tax compliance and avoidance of potential liabilities.

Crypto Tax Statistics in Australia


In conclusion, understanding the taxation system on digital assets in Australia is crucial for anyone who invests in cryptocurrencies. As the popularity of cryptocurrencies continues to rise, it is essential to stay informed about tax obligations to avoid any potential penalties or legal issues. By keeping up to date with the latest regulations and seeking professional advice, you can ensure that you meet your tax obligations and maximize your investments.

Apart from that if you want to know about Cryptocurrency regulation in different countries then please visit our Business category.