Surprisingly Useful AI Article Enhancements
Tax season is closing in for Australian cryptocurrency holders, and many are about to discover that transactions they assumed were tax-free have in fact triggered obligations with the Australian Taxation Office.
Binance Australia has partnered with crypto tax reporting platform, Summ, to publish guidance aimed at first-time filers navigating the 2025-26 financial year return. The core message is blunt: swapping one cryptocurrency for another is a taxable event, even if no Australian dollars change hands.
The ATO treats crypto as property
The ATO does not classify cryptocurrency as money. It treats digital assets as property, which means most crypto activity falls under the capital gains tax regime – the same framework that governs shares and investment property.
The practical consequence is that a trader who swaps Bitcoin for Ethereum has disposed of the Bitcoin in the eyes of the tax office. That disposal must be reported, regardless of whether any fiat currency was involved in the transaction.
According to the Binance guide, crypto-to-crypto swaps are the single most commonly missed disposal among Australian traders.
What counts as a disposal
The ATO considers several actions to be disposals that trigger CGT obligations. These include selling crypto for Australian dollars, swapping one token for another (including stablecoins), spending crypto on goods or services and gifting crypto to another person.
Actions that do not constitute a disposal include buying crypto with AUD and holding it, transferring crypto between wallets or accounts owned by the same individual and holding through a price increase without disposing of the asset.
How gains and losses are calculated
For each disposal, two figures are required. The cost base represents what the holder paid to acquire the crypto, including brokerage and transaction fees. The proceeds represent what was received at the time of disposal, valued in AUD.
The difference between the two is the capital gain or loss on that parcel.
Two rules carry most of the weight. Under the 12-month discount, individuals who held an asset for more than 12 months before disposing of it may discount the capital gain by 50 per cent. Assets held for less than 12 months attract the full gain.
Capital losses can be offset against capital gains for the year. Any surplus carries forward indefinitely but cannot be applied against salary or other ordinary income.
The guide provides a worked example: a trader who purchased 0.1 BTC for $6,000 including fees, held it for 14 months and then swapped it for ETH when the BTC was worth $9,000 would record a $3,000 capital gain. After the 12-month discount, $1,500 flows into the return. The ETH received starts a new parcel with a $9,000 cost base.
Staking rewards and other crypto income
Not all crypto falls under CGT. Certain receipts are classified as ordinary income and taxed at the holder’s marginal rate, valued in AUD at the time of receipt.
This category typically covers staking and earn rewards, referral bonuses and crypto received as payment for work. Some airdrops are also treated as income on receipt, though the treatment depends on the circumstances of the distribution.
A point that catches many first-time filers off guard is that income and CGT are not mutually exclusive. A staking reward is treated as income when received, but it also establishes its own cost base for any future disposal. There is no minimum threshold that exempts small amounts from reporting.
Related: Best Business Laptops for work & school
Related: Best Gaming Laptops
Related: Best Portable Laptop
Record-keeping requirements
The ATO expects records to be retained for five years after the relevant event. Those records must cover the date of each transaction, its nature, the AUD value at the time and the fees paid.
Traders who have operated on a single exchange can use their transaction history as a starting point. For those who have used multiple platforms, moved crypto to external wallets or interacted with decentralised finance protocols, reconstruction becomes considerably more complex.
A transfer between a trader’s own accounts can appear identical to a disposal unless something links both sides of the transaction. The guide flags this as a common pain point for first-time filers.
The ATO already receives data from Australian exchanges under its data-matching program, meaning the tax office has its own view of trading activity regardless of whether individuals choose to report.
Filing the return
The 2025-26 financial year closed on 30 June 2026. Individuals lodging their own returns face a deadline of 31 October 2026. Those using a registered tax agent generally receive an extension, provided they are on the agent’s books before the October cut-off.
In the tax return, net capital gains are reported in the capital gains section. Any crypto income goes under other income. The majority of first-time filers use either myTax through myGov or a registered tax agent.
Binance and Summ partnership
Under the arrangement between Binance Australia and Summ, traders who connect their Binance Australia account can have their transaction history imported automatically. The platform values each transaction in AUD at the time it occurred, applies the ATO’s CGT rules including the 12-month discount and generates a report suitable for self-lodgement or handover to an accountant.
Binance Australia users receive free reports if they have only traded on Binance, at any volume. A 30 per cent discount on paid plans is available for the first year for new users. The discount is applied automatically without a code.
Free plans are available to new and existing Summ users with Binance-only transactions.
Common mistakes to avoid
The guide highlights several errors that first-time filers frequently make. Assuming that no cash-out means no tax is a persistent misconception that causes traders to overlook crypto-to-crypto swaps entirely.
Forgetting to include fees is another costly oversight. Brokerage and transaction fees form part of the cost base, reducing the taxable gain. Omitting them results in a higher tax bill than necessary.
Ignoring losses is also flagged as a mistake. Even a year dominated by losses is worth reporting properly, as those losses carry forward and reduce gains in future years.
The guide warns against leaving preparation to the last minute. Reconstructing a full year of transactions is the time-consuming part of the process. Connecting accounts and reviewing the output takes a fraction of that effort.
Last Updated on September 6, 2026 by Nick Ross
