Is cryptocurrency subject to Capital Gains Tax (CGT) in Australia?

Yes. The ATO treats cryptocurrency as capital property. Trading, selling, or swapping one crypto asset for another triggers a reportable CGT event.

Can I offset crypto capital losses against my salary income in Australia?

No. Capital losses from shares, crypto, or property can only offset capital gains. They cannot reduce assessable salary or wages income.

How does the 12-month rule work for shares and ETF capital gains?

If you hold shares or ETF units for at least 12 months (365 days) from acquisition to contract trade date, individual taxpayers receive a 50% CGT discount.

What is individual share parcel selection (FIFO vs HIFO)?

When selling part of a stock holding bought at different prices, the ATO allows investors to select specific parcel cost bases (e.g. Highest In First Out) to minimize taxable gain.

How are ETF capital gain distributions taxed by the ATO?

Annual tax statements (AMMA statements) from Australian ETFs detail capital gains and statutory CGT discounts, which must be reported on your tax return.

Investment & CGT13 min read•Updated: 8 August 2026

Crypto & Shares CGT in Australia: ATO FIFO Rules & Loss Offsetting (2026–2027)

Essential ATO guide on calculating Capital Gains Tax for stocks, shares, crypto, ETF distributions, First-In First-Out (FIFO) parcel matching, and 50% discount rules.

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Crypto & Shares CGT in Australia: ATO FIFO Rules & Loss Offsetting (2026–2027)

Key Financial Takeaways

✓Disposing of shares, ETFs, or cryptocurrency triggers a CGT event in the financial year the contract or swap occurs.
✓Holding share parcels or crypto assets for longer than 12 months (365 days) unlocks the statutory 50% CGT discount.
✓Taxpayers can choose individual share parcel matching methods (FIFO, LIFO, or Highest In First Out) to minimize taxable net capital gains.
✓Capital losses from stock or crypto trading can ONLY offset capital gains—they cannot be deducted against ordinary salary income.
✓Carried-forward capital losses never expire and must be offset against gross capital gains BEFORE applying the 50% CGT discount.

On This Page

Investing in Australian equities (ASX stocks), Exchange-Traded Funds (ETFs), international shares, and digital assets (cryptocurrency) is a major wealth builder. Under Australian Taxation Office (ATO) legislation, any disposal of shares or crypto triggers a Capital Gains Tax (CGT) event under Part 3-1 of the *Income Tax Assessment Act 1997*.

This guide explains parcel matching methods, capital loss carry-forward rules, ETF AMMA tax statements, and the 50% CGT discount.

1. When Does a CGT Event Occur on Shares & Crypto?

A reportable CGT event occurs whenever you:

1
Sell shares or crypto for fiat currency (e.g. AUD).
2
Swap one cryptocurrency for another (e.g. BTC to ETH).
3
Gift or transfer ownership of shares or crypto to another person.
4
Use crypto to pay for goods or services (unless qualifying under personal use asset rules below $10,000).

2. Share Parcel Matching Methods: FIFO, LIFO & HIFO

When you buy shares or crypto in multiple tranches at different prices, the ATO permits investors to choose which specific asset parcels are sold.

3 Main Parcel Selection Methods:

•
First-In, First-Out (FIFO): Assumes the oldest shares bought are the first sold.
•
Highest-In, First-Out (HIFO): Sells highest cost parcels first to maximize cost base and minimize immediate capital gain.
•
Specific Parcel Selection: Specifically identifies parcels held for >12 months to maximize 50% CGT discount eligibility.

3. ATO Capital Loss Offsetting Rules

If you sell shares or crypto at a loss, you generate a capital loss.

Strict Statutory Loss Rules:

•
Capital losses CANNOT be offset against your salary, wages, or business income.
•
Capital losses MUST be subtracted from gross capital gains in the current financial year.
•
Unused capital losses carry forward indefinitely to future tax years.
•
Capital losses are subtracted BEFORE applying the 50% CGT discount!

4. Calculate Your Shares & Crypto CGT Liability

Estimate your gross capital gains, cost base adjustments, loss offsets, and 50% discount tax payable using Calcivo's Capital Gains Tax Calculator.