ATO Crypto Tax Example 2025–26: Complete Calculation

This worked example follows an Australian resident investor from transaction records to the main tax-return figures. It corrects three common mistakes: ignoring fees in the cost base, applying the 50% CGT discount before capital losses, and treating the Medicare levy or salary withholding as part of the crypto gain calculation.

Scenario: Sarah's 2025–26 Australian tax year

Sarah is an Australian resident individual who holds crypto as an investment rather than as trading stock in a business. During the year ending 30 June 2026 she has:

• AUD 80,000 salary;
• a long-held BTC disposal with an AUD 17,460 capital gain after fees;
• a short-held SOL disposal with an AUD 4,000 capital gain;
• an ETH disposal with an AUD 3,000 capital loss;
• AUD 3,500 market value of staking rewards when received;
• no prior-year capital losses and no other income, deductions, offsets or CGT events for this simplified example.

Her crypto balance at 30 June is not itself taxable merely because its market value changed. Tax events arise from disposals and from income events such as receiving staking rewards. A swap between two crypto assets is generally a disposal of the asset given up, even when no Australian dollars enter the bank account. The Australian crypto tax guide explains the investor, personal-use and business profiles separately.

Step 1: calculate each capital gain or loss

Long-held BTC parcel

Sarah bought 1 BTC on 1 July 2024 for AUD 60,000 and paid an AUD 600 acquisition fee. On 31 January 2026 she sold 0.5 BTC for AUD 48,000 and paid an AUD 240 selling fee.

The parcel was held for more than 12 months. Subject to all eligibility requirements, an Australian resident individual can apply the 50% CGT discount. The discount is not applied yet: capital losses must be dealt with first.

Short-held SOL and loss-making ETH

The SOL disposal produces an AUD 4,000 gain and the asset was held for less than 12 months, so that gain is not discountable. The ETH disposal produces an AUD 3,000 capital loss. A capital loss is not deducted from salary or staking income; it is applied against capital gains under the CGT rules or carried forward if unused.

This example assumes Sarah has records identifying the particular parcels. The ATO does not impose a universal “FIFO-only” rule for every crypto investor. A parcel-identification method must be supported by contemporaneous records and applied consistently; software should not silently choose lots that the records cannot substantiate.

Step 2: apply capital losses before the CGT discount

Total current-year capital gains before losses and concessions are AUD 21,460: AUD 17,460 BTC plus AUD 4,000 SOL. Sarah applies the AUD 3,000 capital loss to the non-discountable SOL gain first, leaving AUD 1,000 of SOL gain. The AUD 17,460 BTC gain remains available for the 50% discount, producing AUD 8,730.

The 50% discount does not mean the sale is taxed at a separate 50% rate. It reduces the eligible gain included in assessable income. That amount is then taxed with Sarah's other taxable income at the applicable marginal rates.

Check the alternative loss allocation

Using the same A$3,000 loss against BTC instead would leave A$14,460 before discount, or A$7,230 after discount, plus the unchanged A$4,000 SOL gain: A$11,230 net capital gain. Applying it to SOL first gives A$8,730 discounted BTC plus A$1,000 SOL, or A$9,730. Both calculations use losses before discount, but the second leaves A$1,500 less assessable income. Under the example's 30% marginal bracket and assumed full 2% Medicare levy, the difference is A$450 income tax plus A$30 levy, or A$480 before other adjustments.

Sarah retains 0.5 BTC from the original purchase with A$30,300 acquisition value; the sold half's selling fee does not reduce the retained half's cost. Keep this closing parcel in the workpaper even though it contributes no sale gain this year. These figures belong to 2025–26, rather than the later CGT framework applying from 1 July 2027.

Step 3: report staking rewards as ordinary income

The ATO states that the money value of staking rewards is generally ordinary income when received and is reported as other income. Sarah includes AUD 3,500. Each reward also creates a parcel with a cost base generally linked to the amount already included as income. A later sale or swap of those tokens can create a separate capital gain or loss.

Do not apply the 50% CGT discount to the income recognised on receipt. A possible discount is considered only on a later disposal of an eligible parcel held for at least 12 months. More detail is available in the Australian staking tax guide.

Step 4: illustrative 2025–26 income-tax calculation

Sarah's simplified taxable income is AUD 93,230:

• salary: AUD 80,000;
• net capital gain: AUD 9,730;
• staking income: AUD 3,500.

For an Australian resident individual in 2025–26, the ordinary rates used here are nil to AUD 18,200, 16% from AUD 18,201 to AUD 45,000 and 30% from AUD 45,001 to AUD 135,000. Higher brackets are not reached in this example.

If the full 2% Medicare levy applies, it would add AUD 1,864.60, producing AUD 20,621.60 before offsets, credits and PAYG withholding. This is not a filing estimate: levy reductions or exemptions, offsets and amounts already withheld can change the balance payable. Keep the income-tax brackets, Medicare levy and PAYG withholding in separate calculations so the final balance payable can be reproduced.

Step 5: translate the calculation into ATO reporting fields

• Total current year capital gains: AUD 21,460, before capital losses and discount.
• Net capital gain: AUD 9,730 after losses and the eligible discount.
• Net capital losses carried forward: nil in this example because the AUD 3,000 loss was fully used.
• Other income: AUD 3,500 staking rewards.

All capital gains must be considered, not only gains above AUD 10,000. Because Sarah's total current-year gains exceed AUD 10,000, the ATO instructions may require the more detailed CGT schedule in addition to the main return labels. The exact myTax path depends on the taxpayer and the return year. See the ATO filing guide for the workflow.

What evidence should support the report?

• exchange statements and original CSV exports;
• wallet addresses, transaction hashes and proof that own-wallet transfers retained ownership;
• dates, quantities, Australian-dollar values and exchange-rate sources;
• acquisition and disposal fees included in the correct calculation;
• the parcel-selection and holding-period workpaper;
• staking timestamps, quantities and AUD market values when received;
• a reconciliation from opening balances to closing balances.

The ATO generally requires CGT records for at least five years after the relevant event and sometimes longer where information is used later, including carried-forward losses. Screenshots alone are less useful than original exports plus a reproducible calculation. CoinTaxReporting can prepare the ledger and Australian report, but unverified cost bases and missing prices must remain visible for review.

Common calculation mistakes

• applying the 50% discount before capital losses;
• subtracting a capital loss from salary or staking income;
• ignoring acquisition and selling fees;
• treating swaps or purchases with crypto as non-events;
• using a blanket FIFO assumption without parcel evidence;
• taxing the 30 June closing balance merely because it increased;
• presenting an estimate before Medicare levy, offsets and withholding as the final tax payable.

Frequently asked questions

Official ATO sources

• ATO: crypto CGT events, discount and reporting
• ATO: staking rewards and income tax treatment
• Australian legislation: resident tax rates for 2025–26
• ATO: capital gain or loss worksheet

Tax and source review completed 9 October 2026.

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.