Crypto Tax Loss Harvesting in Australia (ATO Rules)

What is tax loss harvesting?

Tax loss harvesting means selling assets that have dropped below your cost base to realise a capital loss, which you can use to offset capital gains from other crypto or investments. In Australia, you do this within the same financial year (1 July – 30 June).

How it works for crypto

Every crypto-to-crypto or crypto-to-AUD sale is a CGT event. If you sell a token for less than you paid, the difference is a capital loss. Losses first offset capital gains in the same year; any excess can be carried forward to future years.

Watch the wash-sale trap

The ATO can disallow a loss if you sell and rebuy the same asset quickly with the sole purpose of creating a tax loss. Wait a meaningful period, or use the proceeds differently, and document your intent. If in doubt, speak to a registered tax agent.

Don't harvest just for the tax saving

Only sell if it fits your portfolio strategy. A tax benefit is not a good reason to realise a loss if you still believe in the asset long term.

Software makes it easy

Crypto tax software such as Koinly and Syla tracks unrealised gains/losses and helps you see which parcels are underwater before 30 June.

General information only, current as a guide to ATO rules — not personal tax advice. Crypto tax depends on your circumstances. Verify with the ATO or a registered tax agent before you lodge.