Crypto Tax Guide: Income, Gains & What to Declare

What Is Crypto Income?

Crypto income covers any digital money moves that the ATO thinks might deserve a slice of tax. Whether you’re trading, staking, mining, or getting paid in crypto — it’s not invisible. The ATO sees it, and you need to declare it. Gotax has you covered.

If you've made money, received coins, swapped tokens, or used crypto in a way that earned you value — it’s time to report it.

What Counts as Crypto Income (or a Tax Event)?

Selling Crypto for AUD

If you bought Bitcoin and sold it for a profit — that’s a capital gain.

Swapping Crypto for Crypto

Yes, even swapping ETH for SOL or BTC for DOGE is a CGT event. No cash? Doesn’t matter. The tax office still wants a peek.

Buying Goods or Services with Crypto

If you use crypto to buy something (like a laptop or a pizza), and its value has gone up since you got it — that’s a gain.

Getting Paid in Crypto

Work a job and get paid in crypto? That’s income. Declare it like wages.

Mining or Staking Rewards

If coins hit your wallet through mining or staking — that's income at the time you receive them.

Airdrops

• Expected airdrops (e.g. via a loyalty or campaign): income.

• Unexpected airdrops: may be taxed only when you sell them.

NFTs

Buy and sell NFTs? The ATO sees them like crypto assets — gains and losses apply.

Initial Coin Offerings (ICOs) & Token Rewards

Early investments, bonus tokens, or allocations from ICOs can trigger income or CGT depending on how and why you received them.

Stablecoin Swaps

Swapping Bitcoin for USDT? Still a CGT event.

Chain Splits (Forks)

If you get new coins from a chain split, you’ll pay tax when you sell or use them.

What’s NOT Taxed Yet?

• Just holding crypto – No tax while you're holding.

• Transferring crypto between your own wallets – Not taxable, but keep records.

Personal Investor vs Crypto Business

Most people are individual investors — CGT rules apply.
If you’re trading all day, running bots, or have a dedicated setup — the ATO might call it a business. That means income tax and broader rules.

If you’re unsure? Play it safe and check. It can change everything.

Lost or Stolen Crypto

Lose your keys or get hacked? You may be able to claim a capital loss — but you’ll need:

• Wallet address

• Proof of ownership

• Explanation of what happened

• Evidence that it’s unrecoverable

What You Need to Do

• Keep Records: Track all buys, sales, swaps, rewards, and dates — with AUD value at the time.

• Declare It: If it made you money, you must report it. The ATO has eyes on exchanges.

• Check Each Scenario: Tax treatment depends on what you did. CGT? Income? Loss? Don’t guess.

Derek’s Tax Tips

• Hold for 12+ Months? You may qualify for the 50% CGT discount.

• Multiple Wallets? Treat each one like a bank account — track everything.

• Foreign Exchanges? The ATO still wants your data — declare it.

• Don’t Try to Hide It: The ATO uses data-matching. You won’t outsmart them.

In Plain Derek-English

If you're using crypto in any way that earns, moves, swaps, or spends value — you're in tax territory. Keep records, lodge it right, and avoid surprises. It's not magic money. The ATO sees everything.

Bottom line:
If you’re making money in crypto, don’t treat it like a game. It’s an investment. Declare it properly — because Dogecoin doesn’t pay tax bills.

Derek’s FAQ – Real Questions, Real Fast

Q: I sold my Ethereum for AUD. Do I pay tax on that?
A: Yes. Selling crypto for dollars is a CGT event. Declare the gain or loss.

Q: I swapped Bitcoin for Solana. I didn’t get cash. Do I still pay tax?
A: Yes. It’s a disposal event. Even swaps between cryptos are taxable.

Q: I got airdropped tokens I didn’t ask for. Do I declare them?
A: If unexpected, you might only declare them when sold. If expected, declare as income when received.

Q: I mined crypto on my gaming PC. That count?
A: Absolutely. Mining rewards are income at their AUD value when you received them.

Q: I got paid in crypto for freelance work. Declare it?
A: Yep. It’s regular income — just like getting paid in dollars.

Q: I lost my wallet. Can I write it off?
A: If you can prove the loss and ownership, it might be a capital loss. Keep the evidence.

Q: What if I just hold crypto and never use it?
A: Then no tax yet — but still keep records for when you eventually sell.

Q: Can I use GoTax to report my crypto?
A: You sure can. We make it easy to report everything — swaps, sales, income, and more.

Still not sure what counts as crypto income? Just ask Derek.

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