Crypto is now for regular Joes, and the ATO knows it

• Crypto ownership is increasingly common among everyday Australians, moving beyond niche demographics. And the ATO has taken notice
• The tax rules for crypto can result in a lot of admin, so using the right tools and data can help both first-time and experienced investors prepare for tax season
• Learning which activities are taxable, and what tools are available, can save you a headache and help you confidently navigate the crypto landscape long term

As the 2025 financial year draws to a close, one thing is clear, notes Kraken – crypto is no longer niche.

Between a quarter and a third of Aussies now own digital assets, depending on which survey you’re looking at.

What was once seen as a “tech bro” bet is now a staple fixture in everyday investment portfolios, right alongside shares, savings and family homes. Crypto has gone mainstream, and the Australian Tax Office (ATO) has taken notice.

The ATO has ramped up its scrutiny, with the tax office examining trade activity and utilising international data-matching to detect unreported Capital Gains Tax (CGT) events.

What might surprise first-time investors is the sheer variety of crypto actions that count as CGT events in Australia: If you’re selling a digital asset for cash, swapping digital assets (e.g. ETH for SOL), spending crypto on goods and services, or earning tokens through staking, mining or airdrops – these are all taxable events under Australian law.

Only holding crypto (and not selling or trading), transferring between your own wallets, or buying it with AUD are solidly tax-free events.

For regular ‘everyday joe’ investors – especially those juggling work and family – keeping on top of all this can be overwhelming.

On the other end of the crypto spectrum, you have the more sophisticated investors that transact often and have a diverse portfolio of asset classes, resulting in an extremely complex web of financial reporting responsibilities.

Tool up and stay ahead of the ATO

Regardless of where you fall in the crypto-user spectrum, the ATO expects clear, accurate records if it audits you: dates, transaction amounts and Australian dollar values. If you come up short (or get it wrong on whether a particular transaction was a taxable event), the ATO can estimate your liability, and those numbers are rarely favourable to the taxpayer.

As crypto transactions become more complex, dedicated tax tools are becoming essential. To support users in managing and reporting their tax obligations accurately, Kraken has partnered with crypto tax software provider Koinly. This integration offers Kraken and Kraken Pro users a discounted rate on Koinly’s tax calculator, helping simplify compliance for Australian investors and ease the burden of tax season.

As we look ahead, we are hopeful that crypto assets will get their own bespoke regulatory framework, built out of legislation, to better serve Australians. This will help set predictable rules for both crypto investors and industry participants alike, and preferably help everyday people to not think about capital gains when making everyday transactions.

Until then, EOFY 2025 is one that will be looked upon as the year in which crypto became a part of the tax returns of Australians from every walk of life – not just early adopters and crypto bros.

If in doubt about your personal circumstances, using the right tools and getting advice will give both peace of mind and confidence for investing in the years ahead.

This article was developed in collaboration with Kraken, a Stockhead advertiser at the time of publishing, and was written by Kraken managing director for Australia and rest of world Jonathon Miller.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.