03 October 2025
How Cryptocurrency Impacts Your Tax Return 2025
Cryptocurrencies emerged as the first digital currency to be used as an alternative for the payment of goods and services.
These cryptocurrencies are traded as digital tokens or coins. Unlike physical currency, it does not exist in a physical sense as coins or notes, but in a digital wallet, relying on cryptography and blockchain for security.
In Australia, crypto isn't legal tender and isn't commonly used for everyday transactions or savings. Instead, it's favoured as a speculative investment, known for its volatile nature, which can be influenced by market speculation and media attention. Numerous trading platforms facilitate cryptocurrency investments.
Despite misconceptions about operating outside the system, regulatory bodies like the Australian Taxation Office (ATO) have swiftly adapted to enforce compliance. The ATO initiated a crypto asset data-matching program in the 2014-15 financial year, and has been collecting data on cryptocurrency transactions since that time.
Transactions involving cryptocurrency, such as disposal or exchange, are classified as Capital Gains Tax (CGT) events, requiring reporting of individual gains or losses on the relevant tax return. Given the frequent trading associated with crypto, reporting for tax returns can be complex.
To simplify year-end accounting, there are now reporting platforms that aggregate all crypto trading transactions and produce detailed reports suitable for tax return inclusion.
We require all clients with crypto elements in their tax returns to provide a transaction report from one of these reporting platforms for inclusion in your relevant tax return.
A platform like Koinly is a good place to start, but there are other options available, as long as they meet all the reporting requirements. If you are unsure whether a particular platform meets the ATO reporting requirements, please contact our office. Please refer to the updated guide for 2025 here, to assist with your tax return details.
For more information on recording crypto transactions and tax obligations, visit the ATO website here: Crypto Asset Investments
