One in three Australians own digital assets
Australians with digital assets face closer checks from the Australian Taxation Office as crypto tax reporting comes under heavier scrutiny.
The 2026 Independent Reserve Cryptocurrency Index found 33% of Australians now own digital assets. Chartered Accountants ANZ urged taxpayers to understand the tax rules and keep accurate records.
CA ANZ Australian Tax Leader Susan Franks pointed to Bitcoin, Ethereum and NFTs as examples of a market that has become harder to track for tax.
“Regardless of the outcome, tax needs to be considered when crypto is disposed of, including when converted into Australian dollars, foreign currency or other digital assets,” Franks said.
Franks said a taxable event happens whenever a crypto asset is disposed of. That includes selling, gifting, swapping one asset for another, converting it to fiat currency, or using crypto to buy goods or services.
After each disposal, taxpayers must calculate any gain or loss in Australian dollars at the time of the transaction.
For investors and self-managed super funds, crypto is generally treated as a capital gains tax asset. Staking rewards are typically treated as ordinary income.
Traders may treat crypto as trading stock or ordinary income. In limited cases, crypto may be exempt from CGT if it qualifies as a personal use asset.
According to Franks, treatment depends on the taxpayer’s circumstances. Crypto and NFTs may fall under CGT, revenue account, trading stock rules, or a broader profit-making scheme.
Market volatility has left some taxpayers with gains and others with losses. Franks warned that taxpayers need to know whether a loss is deductible or a capital loss that can only offset capital gains.
ATO data-matching programme
Records should include transaction dates, the value in Australian dollars at the time, the purpose of the transaction, and details of counterparties or platforms used.
Meanwhile, the ATO collects bulk data from Australian service providers through its data-matching programme to check whether taxpayers report crypto activity correctly.
As crypto investing grows, Franks warned that social-media finfluencers can expose taxpayers to financial losses and potential issues with the ATO.
“Any advice about the tax treatment of crypto assets should come from a registered tax agent who is a Chartered Accountant, not social media,” she said.
CA ANZ also flagged significant reform to capital gains tax rules as major changes approach, adding to the need for taxpayers to review their crypto activity carefully this tax season.
