Australia Crypto Staking Tax Guide 2025
Complete guide to reporting staking rewards to the ATO, including ordinary income treatment, myTax reporting, and CGT discount rules.
📌 Quick Summary
- Staking rewards = Ordinary income at fair market value when received
- Tax rate = your marginal rate (19-45% plus Medicare levy)
- Report on myTax as "Other Income"
- When you sell = CGT event with potential 50% discount
- 50% CGT discount if held >12 months from receipt
- Cost base = income value at time of receipt
What is Crypto Staking?
Crypto staking involves locking cryptocurrency to support blockchain networks in exchange for rewards. Common examples:
- Ethereum (ETH): Solo staking or using services
- Cardano (ADA): Delegating to pools
- Australian exchanges: Swyftx, CoinSpot, Independent Reserve
ATO Treatment of Staking Rewards
The ATO treats staking rewards as ordinary income when received:
"Rewards from staking activities are ordinary income at the time they are derived." - ATO Guidance
Two Tax Events
- Income tax: When you receive rewards
- CGT: When you dispose of rewards
When Are Rewards Taxable?
Taxable when you receive and control them:
- Exchange staking: When credited to account
- Solo staking: When earned per-epoch
- Liquid staking: When rebases occur (conservative approach)
Income Tax Calculation
Example: Receive 0.05 ETH when ETH = $5,000 AUD
- Income = 0.05 × $5,000 = $250 AUD
- Taxed at marginal rate + Medicare levy
Tax Rates (2024-25)
| Taxable Income | Rate | With Medicare Levy |
|---|---|---|
| $0 - $18,200 | 0% | 0% |
| $18,201 - $45,000 | 19% | 21% |
| $45,001 - $135,000 | 32.5% | 34.5% |
| $135,001 - $190,000 | 37% | 39% |
| $190,001+ | 45% | 47% |
CGT When You Sell
Cost Base = Income Value
Cost base equals the amount you declared as income.
50% CGT Discount
If held >12 months from receipt:
- Calculate capital gain
- Apply 50% discount
- Add to assessable income
Example:
- Receive 0.05 ETH, income = $250
- Sell after 13 months for $350
- Capital gain = $350 - $250 = $100
- Taxable gain = $100 × 50% = $50
How to Report on myTax
Income Reporting
- Log in to myTax
- Navigate to "Income" section
- Select "Other Income"
- Enter description: "Cryptocurrency staking rewards"
- Enter total AUD amount
CGT Reporting (When Sold)
- Go to "Capital Gains" section
- Add each disposal
- Enter purchase date (when received as income)
- Enter cost base (income value)
- Apply 50% discount if eligible
Example Scenarios
Scenario 1: Swyftx Staking
Stake 10 ETH at 4% APY:
- Annual rewards: 0.4 ETH
- Average price: $5,000 AUD
- Income: $2,000
- Tax (32.5% bracket): $690
Scenario 2: ETH Solo Validator
Run validator with 32 ETH:
- Annual rewards: ~1.2 ETH
- Income: ~$6,000
- Business expenses deductible: Hardware, electricity
Record Keeping
Keep records for 5 years:
- Date and time of each reward
- Amount in crypto
- AUD value at receipt
- Exchange/wallet used
Recommended Tools
- CryptoTaxCalculator - Australian-focused
- Koinly - ATO-compliant
Common Mistakes
- Not reporting as income: Must report at receipt
- Only reporting when sold: Two separate tax events
- Wrong AUD valuation: Use price at receipt date
- Forgetting cost base: Prevents double taxation
- Missing 50% CGT discount: Applies if held >12 months
FAQs
Is staking income or CGT in Australia?
Ordinary income when received, CGT when sold.
Do I get the 50% CGT discount?
Yes, if held >12 months from the date you received the staking reward.
Can I deduct staking expenses?
Only if running a staking business (solo validators). Exchange stakers generally cannot deduct expenses.
What if rewards are locked?
Conservative approach: Taxable when earned, even if locked (similar to IRS treatment).
ATO Resources
Final Thoughts
Australian staking tax is straightforward: income at receipt, CGT at sale with potential 50% discount. The CGT discount makes holding rewards long-term tax-efficient. Use ATO-compliant software like CryptoTaxCalculator for accurate myTax reporting.