Cryptocurrency Tax Calculator Australia

How to Calculate Crypto Tax in Australia

When you sell cryptocurrency in Australia, you must determine whether you have made a capital gain or a capital loss. This calculation is crucial because it will dictate the amount of capital gains tax (CGT) you owe.

To calculate your capital gain or loss, follow these steps:

1. Determine the Cost Base: The cost base is the amount you paid in AUD to acquire the cryptocurrency, including any transaction fees.
2. But, if you are using our calculator, you need to input the expenses (include fees and other expenses) separately.
3. Calculate the Sale Price: The sale price is the amount you received in AUD when you sold the cryptocurrency.
4. Subtract the Cost Base from the Sale Price: This will give you either a capital gain (profit) or a capital loss.

For example, if you bought cryptocurrency for $15000 and sold it for $40000 your capital gain would be $25000.

Handling Multiple Sales

If you have made multiple cryptocurrency transactions, you can sum up all your gains and losses to determine your overall net capital gain or loss for the year.

Adding to Assessable Income

• Capital Gains: If you have an overall capital gain, this amount is added to your assessable income for the year. Your total income, including the capital gain, will be taxed at your marginal tax rate.
• Capital Losses: If you incur a capital loss, it cannot be deducted from your regular income. However, it can be used to offset other capital gains. If you have more losses than gains, you can carry the losses forward to offset future gains.

Capital Gains Tax Discount

Individuals or trusts can benefit from a 50% CGT discount if they hold the cryptocurrency for more than 12 months before selling. This effectively halves the amount of capital gain that is added to your assessable income.

Real-World Example

Let’s put this into context with a practical example:

• Purchase: You buy $15000 worth of cryptocurrency.
• Holding Period: You hold it for 24 months.
• Sale: You sell it for $40,000 in the 2025 tax year.
• Capital Gain: $40000 (sale price) – $15,000 (cost base) = $25,000.

Since you held the cryptocurrency for more than 12 months, you qualify for the 50% CGT discount. So, only $12500 of your gain is taxable.

If your assessable income for the year, excluding the capital gain, is $80000, the total assessable income will be:

• $80000 (regular income) + $12500(taxable capital gain) = $92500.

With a tax rate of 32%, including Medicare, your CGT liability would be:

• $12500 (taxable gain) x 0.325 (tax rate) = $4,062.5.

How much tax do you pay on cryptocurrency in Australia?

In Australia, cryptocurrency is considered a form of property and is subject to Capital Gains Tax (CGT). When you dispose of cryptocurrency, such as by selling, trading, or using it to purchase goods or services, you must pay tax on any capital gain. The tax rate depends on your income bracket and how long you have held the cryptocurrency.

• Short-term holdings (less than 12 months): Taxed at your marginal income tax rate.
• Long-term holdings (more than 12 months): Eligible for a 50% CGT discount, effectively halving the taxable gain.

How to avoid tax on crypto in Australia?

Avoiding tax legally on cryptocurrency in Australia involves strategic planning rather than evasion, which is illegal. Here are some strategies:

1. Long-term Holding: Holding your cryptocurrency for more than 12 months to qualify for the 50% CGT discount.
2. Tax-Free Threshold: If your total income, including crypto gains, falls below the tax-free threshold (currently $18,200), you won’t owe tax.
3. Offset Gains with Losses: Use losses from other investments to offset your crypto gains.
4. Superannuation Funds: Investing through a self-managed superannuation fund (SMSF) could provide tax benefits.
5. Record Keeping: Keeping accurate records to ensure you claim all allowable deductions and offsets.

How to claim crypto losses on taxes in Australia?

If you have incurred losses from your cryptocurrency investments, you can use them to offset capital gains from other investments, reducing your overall tax liability. Here’s how:

1. Record the Losses: Keep detailed records of the transactions where losses occurred.
2. Report on Tax Return: Report the losses on your tax return in the same way you would report gains. This will reduce your total capital gains, thereby reducing your CGT.
3. Carry Forward Losses: If your losses exceed your gains in a given year, you can carry forward the unused losses to offset future gains.

Is sending crypto to another wallet taxable in Australia?

Transferring cryptocurrency between your own wallets is not a taxable event in Australia, as there is no change in ownership. However, you should keep detailed records of these transfers to substantiate your claims in case of an audit. Tax implications arise only when you dispose of the cryptocurrency through sales, trades, or other transactions.

How much money can be gifted tax-free in Australia?

In Australia, there is no specific gift tax. Individuals can gift any amount of money without incurring a gift tax. However, for Centrelink purposes, there are limits on how much you can gift if you are receiving social security benefits. The allowable amount is $10,000 per financial year, with a maximum of $30,000 over five years. Gifts above these limits may affect your eligibility for certain benefits.