Hi,
I traded Crypto as a CFD and made a trade profit after closing my position.
A few Q's...
- How do I go about claiming this in my upcoming tax return as it was not capital?
- Also the trades were in USD - so do I sum the USD contract value multiplied by the exchange rate at the time of the trading? (e.g. 1.31 x Sell Value)
Thanks,
Jed92
Hi @Jed2,
It can be difficult to wade through all the information we have and apologies if Blake's response did not quite fit your scenario. We have tax professionals that answer numerous posts on our forum, one of these relates to CFDs and reporting. I believe you will find most informative, it explains the difference of trading CFDs as opposed to being an investor. Thereafter it depends on your circumstances in relation to the way it will need to be reported on a return. The amounts will need to be converted to AU before reporting.
Please use the link below for a comprehensive overview of CFDs and reporting to us.
What do I report on Income tax return for CFDs.
If you have further questions thereafter, please post them here.
All the best.
Hi @Jed2,
CFDs are treated in the same way as other shares and cryptocurrency, even if you may not actually hold the asset.
The disposal of the asset is a CGT event and will need to be declared as such.
You'll need to calculate your cost base for the CFD, keeping in mine our translation rules.
The translation rules mean that your cost base items are translated at the time the expenses are incurred, and the disposal/acquisition translation is done on the day of the sale. You'll need to use the RBA daily rates, which we moved to using on 1 January 2020.
You can read more about CGT events, and translation (conversion) rules on our website.
Hi,
Thanks for the response.
It is disappointing that there are different answers on other ATO threads where it says all CFD's are seen as income / revenue and are therefore not CGT. (https://community.ato.gov.au/t5/Personal-tax-questions/CFD-taxation-on-gains-and-losses/td-p/4458) which states that "CFDs are always on revenue account, not capital" from an ATO community support person.
As a result of all of the messaging I read that this is not considered capital, last week whilst waiting for a response I closed my CFD position just 3 months short of holding 12 months. Subsequently now I will not receieve the 50% discount benefit on my gains.
I still feel as though there is not clear messaging on CFD's being classified as an assett or income. The links you referred me to do not even mention CFD's in the definitions of CGT events.
Hi @Jed2,
It can be difficult to wade through all the information we have and apologies if Blake's response did not quite fit your scenario. We have tax professionals that answer numerous posts on our forum, one of these relates to CFDs and reporting. I believe you will find most informative, it explains the difference of trading CFDs as opposed to being an investor. Thereafter it depends on your circumstances in relation to the way it will need to be reported on a return. The amounts will need to be converted to AU before reporting.
Please use the link below for a comprehensive overview of CFDs and reporting to us.
What do I report on Income tax return for CFDs.
If you have further questions thereafter, please post them here.
All the best.
15 Apr 2026 · 8 min read time
4 Dec 2023 · 9 min read time
1,309 views
3 replies