Australian Tax Office Explains Crypto Tax Rules for Staking, DeFi Transactions

Australia's crypto tax rules are based on its existing income tax and capital gains tax laws. The country does not have a separate crypto tax regime.

The Australian Taxation Office (ATO) considers investment cryptocurrency as a capital gains tax asset. CGT is not a separate tax; its rate depends on an individual’s marginal tax rate, and the investor simply includes net capital gain in assessable income.

Australian residents for tax purposes must report crypto transactions including selling, trading, using, earning through staking, and using crypto in DeFi. Selling, swapping, spending, or gifting crypto can produce a capital gain or loss, while staking and some DeFi activities may create ordinary income.