Australia is known for its user -friendly Crypto environmentBut recent legal developments can completely change the way Bitcoin is taxed in the country.
Reclassification of bitcoin: major legal update
In May 2025An important decision of the Victorian magistrate Michael O’Connell In a case of Bitcoin flight, suggested that Bitcoin could be recognized as Australian currencynot the property. This historical declaration sparked an intense debate through the cryptographic community and the tax authorities.
Adrian Carter, co-owner in the case, said:
“It was judged that Bitcoin is Australian money. That is to say that it is not a CGT asset. Consequently, Bitcoin acquisitions and provisions have no tax consequences. ”
If Bitcoin is officially reclassified in currency, this could eliminate capital gains (CGT) on BTC transactions and train the government Due to almost $ 1 billion in (around $ 640 million) in the previous tax collections.
Is Bitcoin really free of tax now?
Not yet. The decision is on appeal And has not been officially regulated. While the decision has received attention, the Australian tax office (ATO) has Not updated his advice. Until the higher courts confirm Bitcoin as a legal obligation, the existing tax framework remains in place.
Current cryptographic tax regime in Australia (2025)
- Cryptos, including BTC, ETH, NFTS, Stablecoins and Defi are Classified as CGT active.
- Subject to Capital gains tax between 0% and 40%Based on individual income materials.
- A 50% CGT discount applies if the assets are held for more 12 months Before being sold.
- The ato follows any crypto activity, and Non-compliance can lead to legal sanctions.
Tax gaps for cryptographic investors?
Despite rumors, There is no escape in the current regime. Even if investors hope the exemptions from CGT, The law remains unchanged until Bitcoin is officially recognized as a currency by a senior court and accepted by the ATO.
Final reflections
Unless Bitcoin is officially reclassified, Australian investors and companies must follow the existing cryptographic tax rules. The ATO continues to treat digital assets as a property, no money, and Capital gains tax always applies to all transactions related to crypto.