Do I Need to Pay Tax on Crypto Gains in 2025?

Got into crypto and wondering if the ATO is watching? The short answer: yes and they probably already know about it.

With cryptocurrency exchanges required to report transactions to the ATO, it’s no longer a grey area. Whether you’re casually flipping tokens or holding long term, here’s what you need to know about crypto and tax in 2025.

When Is Crypto Taxable?

You may have a tax obligation if you:

• Sold crypto for fiat currency (like AUD)

• Swapped one crypto for another (e.g. ETH to SOL)

• Used crypto to pay for goods/services

• Gave crypto as a gift (in most cases)

These are all Capital Gains Tax (CGT) events. If you made a profit,  you’ll need to report it.

What About Holding?

Just holding crypto (HODLing) isn’t taxable. But the moment you sell, swap, or spend it — that’s when tax kicks in.

What If I Made a Loss?

Good news: if you sold at a loss, you can use that capital loss to reduce gains from other assets, like shares or property. But you can’t use it to offset your regular income (like salary).

Held for More Than 12 Months?

If you held the crypto for over a year before selling, you may be eligible for the 50% CGT discount (if you're an Australian tax resident and meet the conditions).

How Is It Calculated?

Capital Gain = Sale Price – Purchase Cost – Transaction Fees

You’ll need to keep records for each trade, including:

• Date of acquisition & disposal

• Amount in AUD

• Type of transaction (buy/sell/swap)

• Fees paid

What If I Didn’t Report It Last Year?

The ATO is actively matching data with major exchanges. If you missed declaring crypto income in previous years, you can still amend your return, before the ATO contacts you.

What If I’m a Trader, Not an Investor?

If you’re trading crypto frequently and in a business-like manner, you may be taxed on profit as income, not just capital gains. Different rules apply here, and it’s worth getting personalized advice.

Summary

Action	Taxed?	Type of Tax
Buy & Hold	❌	None
Sell for AUD	✅	Capital Gains
Swap crypto for crypto	✅	Capital Gains
Spend crypto	✅	Capital Gains
Airdrops or staking rewards	✅	Ordinary Income
Loss from sale	✅	Can offset gains

Don’t guess your tax on crypto. Get it right or the ATO might beat you to it.

Need help? Precent can sort your crypto records, calculate your obligations, and keep you in the clear.