Crypto Asset Investments

Transactions involving crypto assets are subject to the same tax rules as assets generally. There are no special tax rules for crypto assets. The tax treatment will depend on how you acquire, hold, and dispose of the asset. Remember for tax purposes, crypto assets are not a form of money.

You can acquire or dispose of a crypto asset on a crypto trading platform, or directly from a digital or hardware wallet. You can exchange or swap crypto assets for other crypto assets, fiat currency or goods and services.

The most common use of crypto assets is as an investment where investors acquire and hold crypto assets to make a financial profit from holding or disposing of them.

As a general rule, for investors, crypto assets are taxed as CGT assets, including for self-managed super funds (SMSFs), and rewards for staking crypto are ordinary income for tax purposes.

In some exceptional circumstances, crypto assets are not kept mainly for investment but for personal use. Where specific conditions are met, crypto assets are not subject to CGT because they are considered to be personal use assets.

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