Use our free cryptocurrency tax calculator to calculate an estimate of how much capital gains tax you may need to pay when you sell your crypto.
This Crypto Tax Calculator is an estimate only. Professional tax advice tailored for your situation is always recommended.
In most cases, cryptocurrency profits are subject to capital gains tax (CGT) if you are not operating as a professional cryptocurrency trader.
Disclaimer: The cryptocurrency tax calculator provides users with an indicative estimate and does not constitute tax advice. Calculating the capital gains tax liability is a complex process — it’s best to consult with a crypto tax professional like Fullstack or your tax advisor to ensure that you are fully compliant with and understand Australian tax law and your tax obligations. Tax situations vary between individuals — the estimate provided by the cryptocurrency tax calculator is based solely on the input you enter.
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The Australian Taxation Office classifies cryptocurrency as an asset. Cryptocurrency is therefore subject to capital gains tax, with few exceptions. In simple terms, capital gains are realised when the holder of an asset, such as Bitcoin or Ethereum, sells the asset at a higher value than it was originally obtained for.
Capital losses are realised when the holder of an asset sells or disposes of an asset at a lower value than it was originally acquired for. It’s necessary to calculate the capital loss or capital gain for a cryptocurrency sale, transaction or disposal event — in many cases, it’s possible to net these values together.
Capital gains tax is not a separate tax — net capital gains generated are combined with an individual’s assessable income during the financial year in which the individual disposes of an asset such as Bitcoin, and taxed at the individual’s marginal tax rate.
The cryptocurrency tax calculator provides users with an estimate of the capital gains tax incurred when a cryptocurrency asset is sold, traded, or otherwise disposed of.
In order to use the cryptocurrency tax calculator effectively, you’ll need to provide a number of specific details about the cryptocurrency asset you have disposed of.
The cost basis is the value of the asset at the time you purchased it, as the total amount paid for the cryptocurrency sold. The cost basis should represent your total investment paid to acquire the crypto asset in AUD including any additional costs or fees.
The sold price should represent the total value of the assets sold in AUD, such as a Bitcoin sale of $20,000, or Bitcoin to Ethereum trade with a value of $20,000.
The amount of time you hold a crypto asset can impact the total amount of capital gains tax your disposal event may incur. Holding a crypto asset for over 12 months can provide holders with a 50 percent capital gains tax discount, which means that only 50 percent of the capital gain should be included within assessable income.
This field should include your total taxable income for the financial year in which you disposed of a crypto asset, including salary or other income earned within the same year. These details allow the cryptocurrency tax calculator to determine the relevant tax rate applied to capital gains tax estimates.
After entering these details into the cryptocurrency tax calculator, click the “Calculate” button’ The crypto tax calculator will then provide an estimate of the capital gains tax incurred by the disposal of a crypto asset.
The example below is provided in order to demonstrate the estimation of capital gains tax incurred from a cryptocurrency asset disposal event. It’s important to note that capital gains tax is not a separate tax — capital gains are added to the assessable income of John’s income tax.
Capital losses incurred from crypto asset disposal may impact the net capital gains that must be reported.
John purchases $10,000 AUD worth of Bitcoin. 18 months later, John sells the Bitcoin for $30,000.
John’s capital gain is therefore $20,000. Holding an asset for over 12 months provides John with a 50 percent capital gains tax discount. John therefore must only pay tax on $10,000.
This $10,000 is added to John’s assessable income. As John has a salary of $100,000, the total assessable income of John is therefore $110,000 due to the inclusion of the capital gain generated by the sale of Bitcoin.
John therefore falls into the $45,001 to $120,000 tax bracket, with a tax rate of 32.5 percent.
In order to calculate John’s capital gains tax on the sale of Bitcoin alone — not total assessable income — the 32.5 percent tax rate for the bracket in which John falls into is applied to the capital gain generated by the disposal event.
The estimated capital gains tax applied to the sale of John’s Bitcoin sale is therefore 0.325 * $10,000 = $3,250.
Retaining all receipts for costs associated with the purchase of capital gains assets is critical in order to minimize capital gains tax. Costs can include withdrawal fees, trading fees, or other costs directly associated with the purchase or trade of cryptocurrency.
The simplest and most effective way to minimize capital gains tax is to hold cryptocurrency assets for over 12 months in order to access a 50 percent capital gains tax discount.
The example below is provided in order to demonstrate the estimation of capital gains tax incurred from a cryptocurrency asset disposal event. It’s important to note that capital gains tax is not a separate tax — capital gains are added to the assessable income of John’s income tax. Capital losses incurred from crypto asset disposal may impact the net capital gains that must be reported.
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