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Taxing cryptocurrency winnings in Australia


1. General principles of taxation

Australia regulates cryptocurrency through the Australian Taxation Office (ATO), which classifies bitcoin and other digital assets not as currency, but as property. This means that cryptocurrency transactions are subject to Capital Gains Tax (CGT) legislation and income tax rules.

For players, this means:
  • cryptocurrency winnings are treated as income at the time of receipt;
  • when converting to AUD or exchanging for other assets, a tax event (CGT event) occurs;
  • tax obligations depend on whether the player is amateur or professional.

2. Hobbies or professional activities

The ATO distinguishes between hobby and professional gambling:
  • if the game is treated as a hobby, winnings are not taxed as income, but cryptocurrency exchanges take CGT into account;
  • if the game is regular and systematic and it is actually a business, the winnings are taxable as assessable income.

For most players who periodically play crypto casinos, taxes usually only concern the moment of sale or exchange of bitcoin.

3. Capital Gains Tax (CGT) and cryptocurrency

CGT is used for:
  • selling won bitcoin for Australian dollars;
  • exchanging BTC for another cryptocurrency;
  • using cryptocurrency to buy goods or services.

Key points:
  • if the cryptocurrency was held for more than 12 months, you can get a 50% discount on CGT;
  • if the amount of transactions is less than 10,000 AUD and is used for personal purposes, the CGT may not be applied (personal use asset exemption).

4. Player responsibilities

Players are required to:
  • keep records of all transactions: winning date, amount, exchange rate, cryptocurrency movement;
  • declare income in the annual tax return;
  • use official rates to convert cryptocurrency into AUD.

The ATO actively controls cryptocurrency transactions through cooperation with exchanges and banks, so it is almost impossible to hide the winnings.

5. Responsibility for evasion

Violations of tax rules can lead to:
  • fines for incomplete declaration;
  • accrual of late interest;
  • in severe cases - criminal liability for evasion.

6. Regulatory outlook

In 2025, Australia continues to develop clearer rules:
  • clarification of the status of cryptocurrency transactions in gambling is expected;
  • strengthening control over offshore BTC casinos;
  • possible tax simplification for small amounts.

Conclusion

Cryptocurrency winnings in Australia are subject to tax accounting: gambling winnings when playing at a hobby level are not taxed, but any conversion of BTC to AUD or other assets causes CGT obligations. For professional players, crypto games are considered income. It is important for players to keep detailed reports and fill out the declaration correctly to avoid fines.