ATO Cracks Down on Australia's Cryptocurrency Transactions

Investors in Australia must report various cryptocurrency transactions to the Australian Taxation Office (ATO) starting from the 2025-26 income year. According to a recent guide, selling, trading, using, earning through staking, and utilizing crypto in Decentralized Finance (DeFi) are all taxable events.

The ATO considers investment cryptocurrency as a Capital Gains Tax asset. The tax is not separate from the individual's marginal tax rate, but rather an inclusion of net capital gain into assessable income. Australian residents for tax purposes must report crypto income and capital gains from both domestic and overseas platforms, regardless of whether they use foreign exchange.

The ATO tracks various transactions, including selling, swapping, spending, or gifting crypto, which can produce a Capital Gains Tax event. Staking rewards are considered ordinary income when received in Australian dollars and also become the tokens' cost base. DeFi activities can trigger multiple tax events due to their complexity.

Investors must keep complete records of wallet transactions, overseas trades, cost bases, and DeFi activities, including dates, token quantities, transaction types, Australian-dollar values, and fees. The deadline for self-lodgers is Monday, November 2, 2026, with tax-agent deadlines potentially differing.