Knowing that crypto is taxable is one thing. Working out the actual number on your return is where most people get stuck, especially when trades are spread across several exchanges, wallets and coins.
This guide walks through the calculation itself for 2025-26 returns and the 2026-27 year: cost base, capital proceeds on swaps, fees, applying losses, the CGT discount and staking income. Each step follows the ATO method for calculating CGT and its crypto CGT guidance.
It suits individual investors who want to check their own figures or their software report. For the wider rules, such as the personal use exemption and ATO data matching, start with our crypto tax guide for Australia.
Key takeaways
- Capital gain = capital proceeds minus cost base, worked out separately for each crypto asset in Australian dollars.
- On a swap, capital proceeds are the market value of the crypto you receive.
- Acquisition fees and incidental costs of the CGT event generally form part of the cost base.
- Subtract capital losses before applying the 50% discount.
- A net capital loss carries forward with no time limit but cannot reduce wages.
- Staking rewards are income when received, and that value becomes their cost base.
Crypto tax calculation at a glance
| Step | What you do |
|---|---|
| 1. List every disposal | Sales, swaps, gifts, conversions to currency and purchases made with crypto |
| 2. Work out capital proceeds | Dollar value received, or market value of crypto received on a swap |
| 3. Work out cost base | Amount paid plus acquisition fees and incidental costs of the disposal |
| 4. Gain or loss per asset | Capital proceeds minus cost base |
| 5. Net the year | Total gains minus total losses (and any losses carried forward) |
| 6. Apply the discount | 50% off remaining gains on assets held 12 months or more |
| 7. Add crypto income | Staking and other income at market value when received |
Source: ATO – Calculating your CGT, ATO – Cost base of assets, ATO – How to work out and report CGT on crypto, checked 9 October 2026.
What is the basic formula for crypto gains?
For each crypto asset you dispose of, the capital gain is the capital proceeds minus the cost base. If the cost base is higher, you have a capital loss instead.
Each coin type is a separate CGT asset, and every value must be in Australian dollars at the time of the transaction. The ATO has used Reserve Bank of Australia exchange rates since 1 January 2020, and accepts a reasonable externally sourced rate where the RBA does not publish one, according to its crypto transactions page.
What goes into the cost base of crypto?
The ATO cost base rules have five elements. The two that matter most for crypto are:
- Money paid or property given for the asset, such as the dollars you paid or the market value of the coin you swapped away.
- Incidental costs of acquiring the asset or relating to the CGT event, such as fees paid to a broker or adviser.
Costs you can claim as a deduction are left out, and if you are registered for GST, net input tax credits are excluded. This is the same capital-versus-revenue split the ATO applies elsewhere, for example to capital expenses on rental properties.
For crypto you earned rather than bought, the starting cost base is usually its market value when received. Staking rewards are an example. Coins from a chain split start with a cost base of zero.
How do I calculate a crypto-to-crypto swap?
A swap is two things at once: a disposal of the coin you give up and an acquisition of the coin you receive. The ATO says your capital proceeds are the Australian dollar market value of the crypto you receive. If that cannot be worked out, use the market value of the crypto you gave up.
The coin you receive then starts its own holding period. Its 12-month clock for the discount begins on the swap date, not the date you bought the original coin.
How are capital losses applied?
The ATO calculation steps are in a set order:
- add up all capital gains for the year
- subtract capital losses for the year, then any net capital losses carried forward from earlier years
- apply losses first to gains that do not qualify for the discount, which gives the lowest tax
- apply the CGT discount to what is left of the discountable gains
A net capital loss carries forward with no time limit, but it cannot be deducted from wages or other ordinary income. Only an actual disposal creates a loss; a fall in value while you still hold the coin does not count.
When does the CGT discount apply?
| Who sells | Held 12 months or more | Held less than 12 months |
|---|---|---|
| Australian resident individual | 50% discount | No discount |
| Trust | 50% discount | No discount |
| Complying super fund (including SMSFs) | One-third discount | No discount |
| Company | No discount | No discount |
Source: ATO – Calculating your CGT, checked 9 October 2026.
If your SMSF holds crypto, the fund needs the same records, plus evidence of ownership for its auditor. The ATO note on auditing SMSFs with crypto assets explains what auditors look for.
Note that from 1 July 2027 the 50% discount is being replaced with cost base indexation and a 30% minimum tax for gains accruing after that date. Our main crypto tax guide covers that change.
How is staking and other crypto income added?
Under the ATO staking and airdrop guidance, staking rewards are ordinary income at their market value when you receive them. Airdrops received for goods or services are also income. Other airdrops are generally not income unless you carry on a crypto trading business, but they are still separate CGT assets.
This income is taxed at your marginal rate in the year you receive it, separately from your capital gains calculation. Our 2025-26 tax rates guide sets out the brackets.
Worked example: Liam’s 2025-26 crypto calculation
Sale: Liam bought 0.5 BTC on 10 August 2024 for $40,000 plus a $200 fee. He sold it on 15 October 2025 for $70,000, paying a $250 fee. Cost base: $40,000 + $200 + $250 = $40,450. Gain: $70,000 – $40,450 = $29,550 (held over 12 months).
Swap: On 1 April 2026 he swapped SOL bought on 1 December 2025 for $3,000 into ETH worth $2,200. Proceeds: $2,200. Loss: $2,200 – $3,000 = -$800.
Net and discount: $29,550 – $800 = $28,750. Discount: $28,750 x 50% = $14,375 net capital gain.
Staking: rewards worth $300 when received, so $300 ordinary income.
Tax: with $90,000 of other income he stays in the 30% bracket under the 2025-26 resident rates. ($14,375 + $300) x 32% including the 2% Medicare levy = $14,675 x 0.32 = $4,696 extra tax.
Rule of thumb: Calculate each disposal on its own line in Australian dollars, net the year’s losses against gains, and only then halve what is left of the gains on coins held 12 months or more.
Common mistakes in crypto tax calculations
- Taxing both sides of a swap. Only the coin you give up has a CGT event; the coin you receive starts a new cost base.
- Halving the gain before subtracting losses. Losses come off first, then the discount.
- Leaving fees out. Acquisition fees and incidental costs of disposal can reduce your gain.
- Using the old 32.5% rate. For 2025-26 the middle bracket is 30%, so older examples overstate the tax.
- Missing records. The ATO record rules require dates, dollar values and the other party for every transaction. Our tax return checklist helps you gather them.
FAQ about calculating crypto tax
Do I subtract capital losses before or after the 50% discount?
Before. The ATO method is to total your capital gains, subtract your capital losses, and only then apply the CGT discount to any remaining discountable gains. The ATO also says to apply losses against gains that do not qualify for the discount first, because that gives the lowest tax result.
Are exchange and network fees part of my cost base?
Fees you pay to acquire crypto, and incidental costs that relate to the CGT event, can generally be included in the cost base under the ATO cost base rules. Keep the fee in Australian dollars with the trade. Costs you can claim as a deduction elsewhere are not added to the cost base.
What exchange rate should I use to value crypto?
Every amount must be converted to Australian dollars at the time of the transaction. The ATO has used Reserve Bank of Australia exchange rates since 1 January 2020 and accepts a reasonable externally sourced rate for currencies the RBA does not list. Use the same approach consistently and keep evidence of the rate.
Can a crypto loss reduce the tax on my salary?
No. A capital loss can only reduce capital gains. If your losses are larger than your gains for the year, the net capital loss carries forward to later years with no time limit, but it cannot be deducted from wages, business income or other ordinary income.
Do I need to hold crypto for 12 months to get the discount?
Yes. Australian resident individuals and trusts can generally claim the 50% CGT discount only on assets owned for 12 months or more. Complying super funds get a one-third discount and companies get none. Crypto sold or swapped within 12 months is taxed on the full gain.
Talk to specialist before it costs you
15-minute discovery call. No obligation, no jargon.
Talk to a registered tax agent
If your exchange reports do not reconcile, or you have swaps, staking and losses across several years, Nanak Accountants can rebuild the calculation and check it before you lodge. Call 1300 626 258, book a discovery meeting, or estimate first with our capital gains calculator. More services are on the Nanak Accountants website.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO calculating your CGT, cost base, crypto transactions, staking and tax rates pages on 9 October 2026. Rates and thresholds change, so confirm the current position before acting.
