Chartered Accountants ANZ (CA ANZ) is urging Australian cryptocurrency investors to make sure they understand their tax obligations as the Australian Taxation Office (ATO) increases scrutiny of digital asset transactions.
The accounting body said the growing use of cryptocurrencies, NFTs and other digital assets meant taxpayers needed to pay close attention to how transactions were treated at tax time and maintain accurate records.
According to the 2026 Independent Reserve Cryptocurrency Index, 33% of Australians now own digital assets.
"The digital asset landscape has become increasingly complex, from Bitcoin and Ethereum to NFTs," CA ANZ Australian Tax Leader Susan Franks said.
"Some investors have made significant gains, while others have suffered losses in a volatile market. Regardless of the outcome, tax needs to be considered when crypto is disposed of, including when converted into Australian dollars, foreign currency or other digital assets."
Disposal can trigger a tax event
Chartered Accountants ANZ said investors should be aware that tax consequences can arise from a range of transactions and are not limited to cashing cryptocurrency out into Australian dollars.
“A taxable event occurs whenever a crypto asset is disposed of,” Franks said. “That includes selling, gifting, swapping one crypto asset for another, converting to fiat currency, or using crypto to buy goods or services.”
When a disposal occurs, taxpayers generally need to calculate the resulting gain or loss in Australian dollars based on the value of the asset at the time of the transaction.
Tax treatment varies
CA ANZ said the way cryptocurrency is taxed depends on how the asset is held and used.
Investors and self-managed superannuation funds generally treat cryptocurrency as a capital gains tax asset, while staking rewards are typically treated as ordinary income.
Crypto held by traders may instead be treated as trading stock or ordinary income. In limited circumstances, cryptocurrency may also be exempt from capital gains tax where it qualifies as a personal-use asset.
"The treatment depends on the taxpayer's circumstances," Ms Franks said. "Crypto and NFTs may fall under CGT, revenue account, trading stock rules, or form part of a broader profit-making scheme."
Losses and records also important
Chartered Accountants ANZ said market volatility meant investors also needed to understand how cryptocurrency losses could be treated for tax purposes.
"Some taxpayers will want to know whether their losses are deductible or are capital losses, which can only offset capital gains," Franks said.
The organisation said taxpayers should maintain records including transaction dates, the Australian dollar value of assets at the time of each transaction, the purpose of transactions and details of counterparties or platforms involved.
The ATO also receives bulk transaction data from Australian cryptocurrency service providers through its data-matching program, which it uses to identify whether taxpayers are correctly reporting digital asset transactions.
Warning over social media advice
CA ANZ also warned cryptocurrency investors against relying on tax advice from social media influencers and other unqualified online sources.
“Unsolicited advice from online influencers can lead to serious financial losses and potential issues with the ATO,” Franks said.
“Any advice about the tax treatment of crypto assets should come from a registered tax agent who is a Chartered Accountant, not social media.”
CGT changes ahead
Chartered Accountants ANZ said cryptocurrency investors should also consider the implications of capital gains tax reforms announced in the 2026-27 Federal Budget.
The announced changes include replacing the 50% CGT discount with an inflation-indexed system from July 1, 2027 and introducing a 30% minimum tax rate for capital gains from the same date.
“These changes will reshape how gains are taxed,” Ms Franks said. “Investors should start considering the long-term implications for their crypto holdings now.”
“Those who have realised gains or attempted to limit losses may face significant tax consequences. Getting advice that reflects your individual circumstances is critical.”