Australia NFT Tax Guide 2025

ATO Treatment of NFTs

ATO treats NFTs as CGT assets (like crypto):

• Buying = not taxable
• Selling = CGT event
• 50% discount if held >12 months

Capital Gains Tax

Calculation

Capital Gain = Proceeds - Cost Base

If held >12 months: Apply 50% discount

Example (Short-term)

• Buy: $3,000 AUD (+ $150 gas)
• Sell after 8 months: $10,000 (- $200 fees)
• Cost base: $3,150
• Proceeds: $9,800
• Capital gain: $6,650 (full amount taxable)

Example (Long-term)

• Buy: $3,000 AUD
• Sell after 15 months: $10,000
• Capital gain: $7,000
• Taxable gain: $7,000 × 50% = $3,500

Personal Use Asset Exemption

If NFT purchased for personal enjoyment (not investment):

• Cost < $10,000: CGT exempt
• Cost ≥ $10,000: CGT applies
• Must be genuinely for personal use

Note: Most NFTs are investments, not personal use. Claiming this exemption requires strong justification.

Minting NFTs

Casual creator:

• Minting = not taxable
• Cost base = minting fees
• Selling = CGT

NFT business:

• Sales = ordinary income (trading stock)
• No 50% CGT discount
• Can deduct business expenses

NFT Royalties

Creator royalties = ordinary income:

• Report on myTax as "Other Income"
• Taxed at marginal rate (19-45% plus Medicare levy)

NFT Airdrops

Receiving NFT airdrops = ordinary income:

• Income = FMV in AUD when received
• Cost base for CGT = income amount

How to Report on myTax

Capital Gains

1. Log in to myTax
2. Navigate to "Capital Gains"
3. Add each NFT disposal
4. Enter acquisition date, cost, disposal date, proceeds
5. System calculates 50% discount if applicable

Income (Royalties/Airdrops)

• Go to "Other Income" section
• Enter description and amount

Record Keeping

Keep records for 5 years:

• Transaction dates
• AUD values
• Gas fees and marketplace fees
• Transaction hashes

Tools

• CryptoTaxCalculator - ATO-focused
• Koinly - ATO support

Common Mistakes

1. Not reporting NFT sales: ATO requires CGT reporting
2. Forgetting 50% discount: Applies if held >12 months
3. Claiming personal use incorrectly: Most NFTs are investments
4. Not including gas fees in cost base: Gas fees are allowable

FAQs

Do I get the 50% CGT discount on NFTs?

Yes, if held >12 months from acquisition date.

Can I claim the $10,000 personal use exemption?

Only if genuinely purchased for personal enjoyment (not investment). Most NFTs don't qualify.

Are NFTs taxed differently than crypto?

No. Identical CGT treatment.