I started trading cryptocurrency (NFTs) this financial year, and I have made over the threshold of $18,500 (capital gains tax applies). However, I do not plan to withdraw and convert to AUD.
My question is, do I still need to report the earnings as part of my income for the financial year - even though I am not withdrawing and leaving it as crypto?
Hi @angryspoon
Your reporting obligations depend on whether you're an investor or trader.
If you're an investor, you work on capital gains tax rules. This means you are only taxed on your crypto when you sell them, and only for the difference between your cost base (what it cost to buy, hold, and sell) and your capital proceeds (what you sell it for). You need to report and pay tax on each of these gains you make, even if you use those funds to reinvest.
If you're a trader, you work under business income tax rules. Your NFTs are your business stock, and you claim deductions for the costs associated with buying, holding, and selling them. When you sell them, they're a business sale. You need to report all business sales you make.
You can read about investor or trader on our website.
Hi @angryspoon
Your reporting obligations depend on whether you're an investor or trader.
If you're an investor, you work on capital gains tax rules. This means you are only taxed on your crypto when you sell them, and only for the difference between your cost base (what it cost to buy, hold, and sell) and your capital proceeds (what you sell it for). You need to report and pay tax on each of these gains you make, even if you use those funds to reinvest.
If you're a trader, you work under business income tax rules. Your NFTs are your business stock, and you claim deductions for the costs associated with buying, holding, and selling them. When you sell them, they're a business sale. You need to report all business sales you make.
You can read about investor or trader on our website.
15 Apr 2026 · 4 min read time
16 July 2025 · 5 min read time
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