Whether you pay tax on your crypto depends on whether you’re considered an investor or a trader making regular income from trading. For individual investors, you may be required to declare and pay Capital Gains Tax if you sell, swap or otherwise dispose of your crypto (including when you donate it to charity). You’ll also need to keep accurate records of your purchase dates so you can calculate your cost basis if you later decide to sell. A crypto tax calculator or a crypto portfolio tracker such as Koinly is useful for this purpose.

Bitcoin Australia Investment: Tips, Risks & Platforms

Bitcoin Australia Investment can be tax-free if you’re seen as a hobby miner rather than a commercial operation, but the line can get blurry. If you’re trading your new mining tokens for money, you’ll be treated as a trader and must declare and pay Capital Gains Tax on any profit. In contrast, if you acquire them as part of your investment portfolio and hold on to them for more than a year, you’ll qualify for a 50% discount on your Capital Gains Tax rate.

If you operate an overseas or decentralised platform that offers Australian consumers exposure to ICOs or other crypto-assets, you may be operating a financial market and require a licence: see Regulatory Guide 211 Financial markets – foreign exchange rates (FG 211). If you offer a payment service using your platform where customers are paying in cryptocurrencies, you may be required to have the appropriate custody and depository authorisations.