Key Points
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Australia is one of the world’s most cryptocurrencies, with 31% of citizens nationwide holding digital assets owning nearly 1,800 crypto ATMs.
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Crypto is currently taxed in Australian properties, triggering the disposal of mining, points or payments and income taxes (CGT).
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The May 2025 court ruling could challenge the status quo, suggesting that Bitcoin can be classified as “Australian currency” and potentially exempt it from CGT.
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The ATO has not changed its policies yet, but the outcome of the appeal may set a transformative precedent for Australia’s future crypto taxation.
Australia Cryptocurrency The tax landscape is undergoing major reviews and potential transformations in 2025. As the Australian Tax Office (ATO) strengthens its focus on digital assets, and recent legal developments challenge existing tax interpretations, investors and policy makers are browsing a complex and evolving environment.
Let’s dig into the Australian cryptocurrency market and taxes to find out what has changed and whether it’s beneficial to crypto users.
Is cryptocurrency legal in Australia?
Australia has quickly become a global leader in adopting cryptocurrencies. Data from the 2025 Independent Reserve Cryptocurrency Index (IRCI) reveal About 31% of Australians own or currently own cryptocurrencies, positioning the nation among the highest adopters in the world.
93% of Australians are aware of at least one cryptocurrency, and Bitcoin remains the most recognized and held digital asset. About 70% of crypto investors include it in their portfolios.
The surge in adoption is not limited to individual investors. Institutional interest is also rising, with major financial institutions such as BlackRock, Gray Layer and WACKER integrating digital assets into their products. Australian Stock Exchange List its first Bitcoin Exchange Trading Fund (ETF) On June 20, 2024, when Vaneck’s VBTC began trading, it marked a major milestone in the exposure of regulated cryptocurrencies in Australia.
Australia’s cryptocurrency market is backed by a strong network comminicateboth domestic and international. Some exchanges in the country include:
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Swyptx: Brisbane-based exchanges are known for their user-friendly interface and extensive support for cryptocurrencies. Swyftx is popular among Australian users for its competitive fees and comprehensive trading capabilities.
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Total spots: Founded in 2013, Coinspot is one of Australia’s most mature exchanges, offering over 430 cryptocurrencies. Because of its high safety standards and easy-to-use platform, it is particularly popular among beginners.
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Coinbase Australia: The Australian department of the global exchange common base registered at the Australian Trading Reporting and Analysis Centre (AUTHAC) provides a secure platform for trading a variety of cryptocurrencies.
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White Pitt: The exchange with its European headquarters has expanded to the Australian market, providing a comprehensive trading platform and supporting over 325 cryptocurrencies.
In addition, the number in Australia has increased significantly Cryptocurrency ATMbecome a leader in the Asia-Pacific region.
As of May 2025, there are approximately 1,817 cryptocurrencies Nationally, major concentrations in Sydney (631), Melbourne (382), Brisbane (319), Perth (159) and Adelaide (110).
However, this rapid growth has caused regulatory scrutiny. Australians raise concerns about potential Money laundering activities Promote through these ATMs and emphasize the need for operators to implement strong anti-money laundering (AML) and anti-terrorism financing (CTF) measures.
Furthermore, Australia’s regulatory environment is developing to adapt to this growth. The Australian Securities and Investment Commission (ASIC) and ATO have been actively developing policies to protect investors while encouraging innovation.
did you know? In October 2024, Coinbase became the first official cryptocurrency partner Nike Melbourne Marathon Festival. Through this marketing partnership, digital medals are provided to over 35,000 participants and permanent records of their competition results are stored on the blockchain. Additionally, runners have the opportunity to earn $20 in Bitcoin after completing their first deal with Coinbase, designed to introduce it to the crypto economy in a safe and engaging way.
Learn about Australia’s crypto tax framework
In Australia, cryptocurrencies are considered property rather than currency. Therefore, disposing of crypto assets, whether through sales, transactions, gifts or purchases, triggers capital gains tax (CGT) events.
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Capital gains or losses are calculated as the difference between the value of the disposal asset and its original cost basis. It is worth noting that if you hold cryptocurrency for more than 12 months, an individual may be eligible for a 50% CGT discount.
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By such mining,,,,, bet or paid as a service, taxed as ordinary income. The amount of taxable depends on the fair market value of the cryptocurrency at receipt.
Reporting Obligations and ATO Guide
The ATO requires that all cryptocurrency transactions be reported in annual tax returns. In Australia, the fiscal year is from July 1 to June 30, and tax returns should usually expire before October 31 Same calendar year.
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Taxpayers must maintain a detailed record of their digital asset activities for at least five years, including the date, the value of the Australian dollar and the nature of each transaction.
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To facilitate accurate reporting, the ATO provides online tools and calculators to help taxpayers determine their CGT obligations. mytax portal It is the official tax return of the ATO, including cryptocurrency transactions.
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ATO strengthens its data matching protocol to partner with Australian cryptocurrency exchanges to collect customer information, including transaction data and personal identifiers. The program is designed to ensure compliance and determine differences in reported revenue.
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Taxpayers who receive ATO’s warning letter are advised to review their cryptocurrency transactions and quickly modify any inaccuracy in their tax applications.
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Decentralized Finance (DEFI) Loan, borrow, accumulate and generate activities such as Australia with specific tax impacts. ATO treats many DEFI transactions as CGT events, especially when ownership of Crypto assets changes.
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In addition, income from DEFI activities is usually classified as ordinary income, Evaluate Fair market value at AUD when received.
did you know? ATO initiated Data matching program Each fiscal year targets approximately 700,000 to 1.2 million individuals and entities. The initiative aims to identify taxpayers who may fail to report the processing of crypto assets in their income tax returns. By taking data from cryptocurrency exchanges and matching them with the ATO system, the program is designed to improve compliance and ensure accurate tax reporting.
Therefore, the ATO has been actively using encryption as a taxable property. So, what has really changed?
Potential legal reclassification and implications
In May 2025, the Victorian District Judge’s ruling in Australia sparked major discussions about the Bitcoin classification and its impact on capital gains taxes.
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May 19, 2025, District Magistrate of Victoria Ruling Involved in former Australian federal policeman William Wheatley, who was accused of stealing 81.6 bitcoins (BTC) 2019.
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Judge Michael O’Connell determined that Bitcoin could be classified as “Australian currency” rather than property.
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This explanation challenges the ATO’s long-term position, which was established in 2014, which treats Bitcoin as a CGT asset, thus allowing its disposal to be subject to capital gains tax.
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Adrian Cartland, the tax lawyer and co-defendant in the case, noted: “Bitcoin is believed to be Australian money. That is, it is not a CGT asset. Therefore, there are no tax consequences for the acquisition and disposal of Bitcoin.” If the appeal is maintained, the ruling could have significant financial impact. Cartland estimates that for individuals who have previously paid Bitcoin transaction tax, a total of up to $1 billion (about $640 million) in CGT refunds.
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The meaning of this ruling is profound. If this is valid, Bitcoin transactions may no longer trigger capital gains tax events. This could significantly change the way encryption is taxed in Australia.
However, it is important to note that the ruling is currently being appealed and has not changed the ATO’s enforcement policy. Until further notice, the ATO continues to require Bitcoin and other crypto assets to be reported as CGT assets.
What’s next for Australia’s crypto tax?
Australia’s crypto tax system may be on the brink of major changes. While the current framework continues to classify digital assets like Bitcoin as property, the legal landscape is rapidly shifting.
The landmark ruling in May 2025 marked Bitcoin as “Australian Money”, opening the door to possible tax-free cryptocurrencies.
But there is one problem: the ruling is being appealed and the ATO has not updated its guidance. All individuals and businesses must continue to comply with existing tax rules until the High Court confirms the reclassification.
Looking ahead, 2025 may become a watershed in Australia’s digital asset policy. Policy makers, regulators and legal experts are Pay close attention to the caseknowing that its final ruling can reshape the treatment of cryptocurrencies, not only legally but economically.
What is the best move now for crypto holders, investors and builders?
Stay informed, keep a clear record, and follow the current instructions of the ATO. Because if things do change, they may change you quickly.
This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
