Bitcoin & Tax
The following information is not official tax advice - please speak to your accountant and do your own research regarding your tax obligations with respect to your bitcoin activity.
Bitcoin is considered an asset by the ATO and is subject to capital gains tax.
This means the sale of Bitcoin is considered a taxable event. This is called a 'disposal', and you should research other actions which may count as a disposal in the eyes of the ATO. Examples of disposals may be the transfer of bitcoin into a custodian in exchange for a financial product, or for another crypto token.
If you sell the Bitcoin at less than its original purchase cost you may be able to claim a capital loss.
Bitcoin, like other assets, is subject to the 50% capital gains discount if it is held for more than 12 months. However as of 1 July 2027, tax rules are changing in the way that the capital gains discount is applied. From that date, the ATO intends to treat bitcoin capital gains using cost base indexation and a 30% minimum tax rate for individuals, trusts, and partnerships. The tax rate then scales in conjunction with your marginal income tax rate.
The 50% CGT discount model applies to CGT gains made prior to 1 July 2027, so ensure your records are kept in order so you know what your obligations are.
For more complete information we recommend talking to your accountant.
You can also listen to our Podcast episode where we discuss the upcoming changes to the tax system with respect to bitcoin with a qualified accountant.
For most people, simply providing the Hardblock financial year statement to your accountant will be all you need to do.
Statements
Hardblock provides Financial Year statements and Transaction History reports that can be used to complete your tax obligations, SMSF audits and other reporting requirements related to your investments.
The statements page also displays the end of financial year bitcoin price that you can use in calculating your obligations.
To access statements, head to the Statements option from the main menu:
To download specific financial year reports, select the year and then click Download Report. You can download a CSV file of all transaction on your account as well.
If your use case is more complicated, i.e. you use many different exchanges, or different coins, or are a very frequent trader, then Bitcoin reporting tools can be useful.
Hardblock has integrations with Syla and Koinly for Bitcoin tax reporting.
Our guide on how to export transactions to Syla.
Our guide on how to export transactions to Koinly.
Your AI of choice is very useful in navigating tax and reporting requirements, and may also help you in working out the calculations.