Quick answer
Hold crypto for over a year in Australia and only half your gain is subject to tax — the CGT discount halves your liability.
Income Tax
Australia
CGT Discount
Australia's 50% capital gains tax discount for assets held longer than 12 months before disposal.
AustraliaUnderstanding CGT Discount on crypto
The capital gains tax (CGT) discount is an Australian tax concession that reduces the taxable capital gain on an asset held for more than 12 months. Individuals and trusts are entitled to a 50% discount, meaning only half the net capital gain is included in assessable income. This effectively halves the CGT rate for long-term crypto holders. The discount does not apply to assets held for 12 months or less, to companies (which receive no discount), or to losses (losses must be applied in full before the discount is calculated). The ATO has confirmed that cryptocurrency is eligible for the CGT discount subject to the 12-month holding requirement.
The capital gains tax (CGT) discount is an Australian tax concession that reduces the taxable capital gain on an asset held for more than 12 months. Individuals and trusts are entitled to a 50% discount, meaning only half the net capital gain is included in assessable income. This effectively halves the CGT rate for long-term crypto holders. The discount does not apply to assets held for 12 months or less, to companies (which receive no discount), or to losses (losses must be applied in full before the discount is calculated). The ATO has confirmed that cryptocurrency is eligible for the CGT discount subject to the 12-month holding requirement.
What this means for your crypto activity
12-month hold halves tax
Holding crypto for just over 12 months before selling can halve your CGT liability.
Applied to net gain
The discount applies to the net gain after deducting capital losses.
Losses applied first
Losses must be applied in full against gains before the 50% discount is calculated.
Discounted gain reduced by losses
If the gain has already been discounted and you have a loss, the loss reduces the discounted gain — not the gross gain.
Entity eligibility
The discount is available to individuals and trusts, but not companies or superannuation funds (which get a 33.33% discount instead).
- Holding crypto for just over 12 months before selling can halve your CGT liability.
- The discount applies to the net gain after deducting capital losses.
- Losses must be applied in full against gains before the 50% discount is calculated.
- If the gain has already been discounted and you have a loss, the loss reduces the discounted gain — not the gross gain.
- The discount is available to individuals and trusts, but not companies or superannuation funds (which get a 33.33% discount instead).
Seeing it in action
Example scenario
Tom buys 1 BTC for AUD $30,000 and sells it 14 months later for AUD $60,000. His gross gain is $30,000. After applying the 50% CGT discount, only $15,000 is included in his assessable income. At a marginal tax rate of 32.5%, he pays $4,875 in CGT. If he had sold at 11 months, the full $30,000 would be taxable — resulting in a $9,750 CGT bill.
How this works across jurisdictions
- Australia
Under Division 115 of the Income Tax Assessment Act 1997, individual Australian tax residents who maintain clear ownership of a crypto asset for at least 12 months qualify for a 50% CGT discount on the net gain after applying all eligible capital losses.
From the KoinX blog
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