Investing in cryptocurrency
Each cryptocurrency is a separate asset for CGT purposes. When you dispose of one cryptocurrency to acquire another, you are disposing of one CGT asset and acquiring another CGT asset.
If you hold cryptocurrency for 12 months or more, you may be entitled to a 50% CGT discount to reduce any capital gains made when you dispose of it.
Cryptocurrency as a personal use asset
Cryptocurrency is not a personal use asset if it is kept or used mainly:
- as an investment
- in a profit-making scheme
- in the course of carrying on a business.
The relevant time for working out if an asset is a personal use asset is at the time of disposal. The longer it is held, the less likely it will be a personal use asset.
Only capital gains made from personal use assets acquired for less than $10,000 are disregarded for CGT purposes. However, all capital losses made on personal use assets are disregarded.
Source: ATO