- Crypto held for sale in a crypto business (trading, mining, an exchange) is trading stock. Crypto held as an investment is a CGT asset, and companies get no CGT discount.
- Company tax is 25% for base rate entities (aggregated turnover under AUD 50 million and no more than 80% passive income) and 30% for other companies, in 2025-26 and 2026-27.
- Since 1 July 2017, buying and selling digital currency such as bitcoin is not subject to GST: it is an input-taxed financial supply, or GST-free with non-residents. Accepting crypto as payment works like accepting money.
- Stablecoins and NFTs are not digital currency for GST.
This page covers companies and sole traders that hold, trade or accept crypto in Australia. Tax for private investors is on personal tax, and lodgment dates are on filing and deadlines. It is general information, not tax advice.
Trading stock or investment
The ATO distinguishes three ways a business can hold crypto:
| How the business holds crypto | Tax treatment (ATO) |
|---|---|
| In a crypto business, such as trading, mining, an exchange or selling NFTs | Trading stock: the cost is deductible and sale proceeds are ordinary income. Stock on hand is valued at the end of each income year. |
| To exchange for goods or services in the ordinary course of any business | Also trading stock |
| As an investment | CGT asset: gains and losses go into the business’s net capital gain when a CGT event happens |
Crypto received as payment for services is ordinary income of the business at its money value when the income is derived, and that value is its cost base later. To value crypto held as trading stock at year end, the ATO says one way is a fair market value published by a reputable crypto exchange. Paying staff in crypto is covered on personal tax.
Company tax
| Company (2025-26 and 2026-27) | Rate |
|---|---|
| Base rate entity: aggregated turnover under AUD 50 million and no more than 80% of assessable income is base rate entity passive income | 25% |
| All other companies | 30% |
The rates are set in section 23 of the Income Tax Rates Act 1986. Companies cannot use the 50% CGT discount, so a capital gain on crypto held as an investment is taxed in full. A net capital gain counts as base rate entity passive income (section 23AB), so a company that mainly earns gains on crypto investments may not qualify for the 25% rate; check this with an adviser.
GST on crypto
Australia’s goods and services tax (GST) is 10% of the value of a taxable supply (section 9-70 of the GST Act), but digital currency is treated like money. The Treasury Laws Amendment (2017 Measures No. 6) Act 2017 changed the GST Act with effect from 1 July 2017, so that a supply of digital currency is not a supply unless it is given in exchange for digital currency or money. The ATO’s guidance:
- Trading digital currency for money or other digital currency with an Australian resident located in Australia is an input-taxed financial supply: no GST is charged. With a non-resident outside Australia it is GST-free. If you trade through an exchange and cannot identify the other party, you may use the exchange’s location.
- Paying or being paid in crypto works like money: GST on a taxable sale is reported in Australian dollars, using the exchange rate on the conversion day, and the tax invoice must show the GST in dollars or enough information to work it out.
- Mining services supplied to a mining pool operator in Australia are taxable; to a non-resident pool operator outside Australia they are GST-free. Selling the mined digital currency is an input-taxed supply unless it is GST-free.
- Not digital currency: NFTs (a taxable supply unless GST-free), stablecoins pegged to another asset (an input-taxed financial supply unless GST-free), and initial coin offerings that are securities, derivatives or rights to goods and services.
- Registration. If you only make input-taxed supplies of digital currency, you do not need to register for GST. You must register if you carry on an enterprise, make GST-free supplies of digital currency and exceed the GST turnover threshold. Whether you can claim GST credits on costs depends on the financial acquisitions threshold.
The ATO does not say anything specific about GST on staking rewards, so we do not describe it.
Crypto service providers
A business that runs an exchange has GST on its own fees: the ATO says facilitating crypto trades is a taxable supply to Australian residents in Australia and GST-free to non-residents outside Australia, while buying and selling crypto directly with customers is an input-taxed financial supply. A non-resident exchange must register for GST if its supplies connected with Australia exceed the turnover threshold.
Exchanges and other virtual asset service providers must also be registered with AUSTRAC, and from April 2027 digital asset platforms need an Australian financial services license from ASIC. Those rules are on regulation.
Sources
The ATO website refused automated access in October 2026. We read the ATO pages below through copies saved by the Internet Archive between November 2025 and October 2026, and checked the law itself on the Federal Register of Legislation.
- ATO: Crypto assets used in business (last checked October 2026)
- ATO: Crypto mining (last checked October 2026)
- ATO: Company tax rates (last checked October 2026)
- ATO: GST and digital currency (last checked October 2026)
- ATO: GST and trading digital currency (last checked October 2026)
- ATO: GST and digital currency as payment (last checked October 2026)
- ATO: GST and digital currency exchanges (last checked October 2026)
- Federal Register of Legislation: A New Tax System (Goods and Services Tax) Act 1999 (sections 9-10(4) and 9-70, definition of digital currency, endnotes on the 2017 Measures No. 6 Act) (last checked October 2026)
- Federal Register of Legislation: Income Tax Rates Act 1986 (sections 23 and 23AA) (last checked October 2026)
This page is general information, not tax advice. Rules and rates change, so check the official sources above before you act.