Crypto tax deductions in Australia

Claiming crypto-related tax deductions can significantly reduce your taxable income, and even increase your tax refund. To help you stay compliant and claim everything you're entitled to, our tax team has compiled a comprehensive list of the most common deductions we see for Australian crypto investors and traders.

This guide doesn’t just cover what you may be able to claim, it also explains why these deductions are allowed, how to claim them correctly, and what records you need to keep in case the ATO asks questions.

When can crypto expenses be claimed?

If you have incurred expenses or costs related to your crypto, then you can normally claim them on your tax return provided they are eligible.

Crypto-related costs fall into one of three categories:

Immediate tax deduction: Expenses directly tied to an income-producing activity.
Capitalised expenses: Costs associated with acquiring and maintaining crypto assets held for investment. These are added to your cost base and only factored in when the asset is sold or disposed.
Depreciation: Assets like computers, monitors, mining equipment, and office furniture may need to be depreciated over time, with a portion of the cost claimed each year.

The tax treatment depends on your situation:

Investor: You buy and hold crypto with the intention to realise a long term gain from price increase. Most of your expenses (e.g. brokerage fees) are capitalised and form part of your cost base. You claim them when you sell the asset.
Trader: You operate more like a business, frequently buying and selling crypto for short-term profits. In this case, most of your crypto-related expenses are immediately deductible as business expenses.
Income-producing investment: If you earn income from your crypto (e.g. staking, interest, yield farming), expenses related to managing or maintaining that income stream (like software or interest on loans) may also be immediately deductible, even if you’re not a trader.

If you're not sure whether a particular expense is deductible, keep the records anyway and ask your tax agent at tax time. They’ll help determine how it should be claimed.

Complete list of crypto tax deductions and costs

Our tax team combined their experience to create one of the most comprehensive lists of crypto-related tax deductions and costs in Australia. While not all of these will apply to you, there may be a few you’ve missed.

Remember: whether an expense is immediately deductible, capitalised or depreciated can depend on your activity type, the asset, the value of the cost, and the type of expense.

Scan through the list and check any that apply. If you’re unsure about any of them, flag them for your tax agent.

Expense Type	Details
Crypto tax software	Subscriptions to tax software (e.g Syla) are an immediate deduction if used for managing your tax affairs. (ATO - Cost of managing tax affairs)
Accounting and tax agent fees	Costs for tax advice and accounting services related to managing your tax are an immediate deduction. (ATO - Cost of managing tax affairs)
Brokerage fees	Brokerage fees are already handled by your crypto tax software. For investors, the brokerage fee will be capitalised (added to the original purchase cost), so you'll get the benefit when you later sell the asset. For traders, the brokerage fees are immediately deductible. (ATO - What is the cost base)
Credit or debit card transaction fees	Card fees on purchases are typically not reported by the exchange, so check your card statement and record them separately if not already included in your tax software.
Network fees	Everytime you withdraw, transfer crypto, there are fees involved which are either capitalised or deductible. Your crypto tax software should already handle this for you.
Market research	Paid services for researching crypto investments, market analytics platforms, newsletters, financial data subscriptions, and paid signals.
Portfolio management software	Cost of software used for managing your investment portfolio, e.g. TradingView
Investment seminars	Attending an investment seminar about an existing crypto investment. (ATO - Investment seminars)
Conference and event attendance	Expenses incurred attending crypto-related conferences, or networking events.
Crypto education	Courses, workshops, educational materials, books, and crypto-specific training.
Hardware wallet	Hardware wallet used to store your crypto investment.
Security	Security software, VPN services, and other security-related expenditures, provided it's used specifically for your crypto activity, otherwise it should be apportioned appropriately.
Loan interest	If you borrowed specifically to invest in crypto (e.g. loan or redraw from existing loan), the interest on that amount may be capitalised or deductible.
Computer and office equipment	Costs for computer hardware, monitors, and office furniture are either immediately deductible or may need to be depreciated over their useful life, depending on the item and its cost. (ATO - Computers, laptops and software)
Home office expenses	Costs for internet, telephone bills, electricity, rent, and utilities apportioned for their use in crypto activities. These can sometimes be claimed, particularly if your are operating a crypto business. (ATO - Working from home expenses)
Mining equipment	The cost of purchasing crypto mining equipment will likely need to be depreciated over its useful life, due to the high upfront cost.
Legal expenses	Fees for legal advice and compliance related to cryptocurrency.
Bank charges	Bank fees, maintenance charges, and currency conversion costs linked to crypto investing or trading.
Portfolio management fees	Charges paid to investment managers or financial advisors managing your crypto portfolio.

Expenses you can’t claim

Some costs may feel related to your crypto activity, but they aren’t tax deductible and can't be claimed. Common examples include:

Expense type	Why It’s Not Deductible
Personal use crypto	Crypto used for personal expenses (e.g. buying goods or services) is not deductible.
Your time	Time spent researching markets or calculating tax manually is not a deductible cost, even if it adds value.
Scams or theft	Losses from stolen crypto or scams are generally eligible as capital losses, but they are not deductible as an expense. (ATO – Loss or theft of crypto assets)
Unsubstantiated claims	Expenses without valid tax invoices, payment evidence, or a clear connection to your crypto activity are not deductible.
Capital costs mistaken as expenses	Buying crypto itself, brokerage, and other fees when acquiring an investment asset are not immediately deductible, instead they are added to the cost base. (ATO – Cost base of assets)

If you're unsure whether something is deductible, ask your tax agent.

Apportioning expenses: private vs investment

If an expense is shared between your crypto activity and personal use, you must apportion it. The ATO requires accurate record-keeping to substantiate apportioning your expenses.

You can only claim the portion directly related to your crypto income-producing activities.

Common examples:

Home office costs: Calculate the portion of rent, electricity, internet, or phone usage used for your actual crypto-related activities.
Computer equipment: Claim only the portion used for crypto activities.

💡 Example: apportioning internet usage
You pay $1,200 annually for internet, and you calculate that 40% of your internet usage is related to crypto trading and portfolio tracking.
You can claim $480 ($1,200 × 40%) as a deduction.

Crypto investors vs traders

If you are classified as a Trader then it means you are in the business of trading cryptocurrency. When it comes to claiming expenses, it means many expenses will be available as immediate tax deductions including brokerage fees.

Traders: Considered to be carrying on a business. Most crypto-related expenses can be claimed as immediate deductions, including trading fees.
Investors: Typically buy and hold assets long term. Most costs are capitalised and only deducted upon sale (e.g. brokerage, acquisition fees).

Not sure which you are? A tax agent can help you determine your classification, it makes a big difference to how your tax is calculated.

Record keeping for crypto deductions

To claim deductions, the ATO requires that you keep clear and accurate records for all expenses. You must retain:

Tax invoices or receipts showing the supplier, amount, date, and nature of the expense.
Proof of payment, such as bank statements or credit card records.
Notes or annotations showing how the expense relates to your crypto investment or trading activity.
Apportionment calculations, where applicable.

Records must be kept for at least five years after lodging your tax return.

If you're lodging through a tax agent, make sure you also provide them with these records, otherwise they won't know you're eligible for the deduction.

Maximise your crypto deductions safely

Understanding what you can and can’t claim is the first step. Maintaining good records and using crypto tax software like Syla helps simplify the process, and gives your tax agent everything they need to get it right.

With the right tools and advice, you can claim with confidence, and keep more of your after-tax crypto.

Crypto tax deductions in Australia