Crypto Capital Gains Tax Australia – Step by Step

The 50% discount is the most important number in Australian crypto tax. Here's how to calculate it, when it applies, and how to claim it.

The Golden Rule: 50% CGT Discount for 12+ Months

If you hold crypto for more than 12 months, only 50% of your capital gain is taxable.

This is massive. It can cut your tax bill almost in half.

The Basics: What is a Capital Gain?

Capital Gain = Sale Price – Cost Base

Example:

• Bought 1 BTC for AUD 50,000
• Sold 1 BTC for AUD 75,000
• Capital Gain: AUD 25,000

Step 1: Determine Your Cost Base

Cost base includes:

• ✅ Purchase price
• ✅ Brokerage fees
• ✅ Exchange fees (buy side)
• ✅ Transfer fees to cold storage
• ✅ Costs to establish title to the asset

Cost base excludes:

• ❌ Staking rewards (separate income)
• ❌ Airdropped tokens (separate income)
• ❌ Mining rewards (separate income)

Example:

• BTC purchase price: AUD 50,000
• Exchange fee (0.1%): AUD 50
• Transfer fee to cold wallet: AUD 100
• Total Cost Base: AUD 50,150

Step 2: Calculate the Raw Capital Gain

Sale Proceeds – Cost Base = Capital Gain

• Sale price: AUD 75,000
• Minus: AUD 75 exchange fee (sell side)
• Net proceeds: AUD 74,925
• Minus cost base: AUD 50,150
• Capital Gain: AUD 24,775

Step 3: Check the Holding Period (Critical!)

The 50% discount ONLY applies if you held the asset for more than 12 months.

Counting Method:

• If bought on 1 July 2024 and sold on 2 July 2025 = 12 months + 1 day = ✅ Qualifies
• If bought on 1 July 2024 and sold on 1 July 2025 = exactly 12 months = ❌ Does NOT qualify (must be MORE than 12)
• If bought on 1 July 2024 and sold on 30 June 2025 = 11 months 30 days = ❌ Does NOT qualify

Important: The 12-month rule counts calendar days, not trading days.

Step 4: Apply the 50% Discount (If Eligible)

If held >12 months:

• Capital Gain: AUD 24,775
• Apply 50% discount: AUD 24,775 × 50% = AUD 12,388
• Taxable Capital Gain: AUD 12,388

If held <12 months:

• Capital Gain: AUD 24,775
• No discount applies
• Taxable Capital Gain: AUD 24,775

Step 5: Add to Your Taxable Income

The taxable capital gain is added to your other income (salary, business, etc.).

Example:

• Your salary: AUD 100,000
• Taxable capital gain: AUD 12,388
• Total taxable income: AUD 112,388

Step 6: Calculate Your Tax

You pay tax on the total at your marginal tax rate.

2025-26 Australian tax brackets:

Example (continuing from above):

• Income: AUD 100,000 → marginal rate 30.5%
• Additional capital gain: AUD 12,388
• Tax on capital gain: AUD 12,388 × 30.5% = AUD 3,778

The Discount Value

Without 50% discount:

• Tax on AUD 24,775 full gain: AUD 24,775 × 30.5% = AUD 7,556

With 50% discount:

• Tax on AUD 12,388 discounted gain: AUD 12,388 × 30.5% = AUD 3,778

Discount savings: AUD 3,778 (50% tax saving on your gain!)

Crypto-Specific Scenarios

Scenario 1: Bought BTC, Sold 0.5 BTC (partial sale)

• You use FIFO matching (first in, first out)
• The 0.5 BTC sold is matched to your earliest purchase
• Holding period is calculated from the earliest purchase date

Scenario 2: DeFi Yield / LP Tokens

• Yield received is ordinary income (no discount)
• When you sell LP tokens, any gain on those tokens may qualify for discount
• Holding period runs from when you entered the pool

Scenario 3: Staking Rewards Then Selling

• Staking rewards are ordinary income (no discount) when received
• If you sell those staked coins later, gain/loss is calculated separately
• Holding period for discount runs from when you sold the staked coin

Common Mistakes

❌ Thinking you need to hold 12 calendar months exactly (it's >12 months)
❌ Including staking rewards in cost base
❌ Forgetting exchange fees
❌ Not tracking holding periods per transaction
✅ Keep detailed records with exact dates

Your Next Step

👉 Upload your transaction history. CoinTaxReporting calculates holding periods and applies the 50% discount automatically – no mistakes.

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.