Australia Crypto Tax Guide for Solana Users

Who this is for

• Solana users who are Australian tax residents
• Traders, collectors, and DeFi users who need to report crypto activity to the ATO
• Anyone using Netrunner to generate Australian crypto tax reports

Why this matters

The ATO treats cryptocurrency as property (an asset), not currency. Every sale, swap, or spend triggers a Capital Gains Tax (CGT) event that must be reported on your tax return.

The ATO's data-matching program collects transaction data from Australian exchanges—affecting 1.2 million Australians as of May 2024. If you've used a centralized exchange (CEX) or KYC crypto service they already know what you traded.

Netrunner tracks your Solana transactions and calculates your capital gains, losses, and income using ATO-compliant cost basis methods.

How crypto is taxed in Australia (high level)

You generally owe taxes when:

• You sell crypto for AUD or foreign currency
• You trade one crypto for another (including SOL to USDC)
• You spend crypto on goods or services
• You receive crypto as income (staking rewards, airdrops, mining, payment for work)

You generally do not owe taxes when:

• You buy crypto with AUD
• You hold crypto without selling (unrealized gains)
• You transfer crypto between your own wallets
• You receive an initial allocation airdrop (tokens not previously trading)

What Netrunner does for Australian taxes

• Calculates capital gains and losses using FIFO (default) or your preferred cost basis method
• Tracks the fair market value (FMV) of all transactions in AUD
• Labels transaction types: swaps, staking rewards, LP deposits, NFT trades
• Generates reports compatible with ATO myTax requirements
• Separates income (staking, airdrops) from capital gains (trades, sales)
• Tracks holding periods for the 50% CGT discount applicable to long-term trades (>12-months)

Note: Netrunner generates tax reports. It does not file your taxes or provide tax advice. You or your accountant use the reports to complete your return.

Australian tax forms supported by Netrunner

• Capital Gains Report — All disposals with cost basis, proceeds, gain/loss, and holding period (for CGT section of your return)
• Income Summary — Shows staking rewards, airdrops, and other crypto income for the "Other Income" section
• Transaction History (CSV) — Full record of all transactions for your records or accountant

Capital gains tax rates in Australia

CGT is not a separate tax rate. Capital gains are added to your taxable income and taxed at your marginal income tax rate.

2025-26 Income Tax Rates (from 1 July 2025 to 30 June 2026)

Plus 2% Medicare Levy for most taxpayers

The 50% CGT Discount

Hold crypto for more than 12 months before selling? You only pay tax on half the gain.

Example: You sell crypto for a $10,000 profit after holding for 14 months. Only $5,000 is added to your taxable income.

Requirements:

• Hold the asset for at least 12 months (excludes acquisition and disposal dates)
• Only available to individual investors (not classified as traders)
• Cannot apply to assets held less than 12 months

This is one of the most valuable tax benefits in Australia. Netrunner tracks holding periods automatically.

How common Solana activity is taxed

Trades and swaps

Every swap triggers a CGT event. Trading SOL for USDC, swapping tokens on Jupiter, or converting to any other crypto—all taxable.

Netrunner calculates the gain as: Proceeds (FMV in AUD) – Cost Basis = Capital Gain/Loss

NFTs

• Buying an NFT with SOL — Taxable. You disposed of SOL.
• Selling an NFT — Taxable. Capital gain or loss based on your cost basis.
• Minting an NFT — The SOL spent becomes part of your NFT's cost basis.

Staking rewards

Staking rewards are ordinary income taxed at FMV (in AUD) when you receive them. The FMV becomes your cost basis for future CGT when you sell.

Unlike capital gains, staking income has no 50% discount—it's fully taxable at your marginal rate.

DeFi lending and yield

• Yield and rewards — Taxed as ordinary income at FMV when received (similar to interest income)
• LP deposits and withdrawals — May trigger CGT events depending on structure
• Interest from lending — Income at FMV when paid

Airdrops

Treatment varies:

• Most airdrops — Ordinary income at FMV when received
• Initial allocation airdrops (tokens not previously trading) — Tax-free at receipt; entire proceeds become gains on disposal (cost basis = $0)

Netrunner labels airdrops separately so you can review with your accountant.

Wrapping and unwrapping tokens

CGT event. The ATO confirmed that wrapping tokens (e.g., SOL to wSOL) is a disposal. Track these transactions carefully.

Transfers

Moving crypto between your own wallets is not taxable. Netrunner identifies these as transfers and excludes them from gain/loss calculations.

Cost basis methods in Australia

Unlike regions such as Canada that require a single, specific cost basis method (which requires ACB), Australia allows multiple cost basis methods for investors.

Important: If you're classified as a trader for tax filling purposes (crypto is your primary income source), only FIFO is permitted.

What's included in cost basis

• Purchase price (AUD equivalent at time of acquisition)
• Transaction fees (both purchase and sale)
• Gas fees

Netrunner calculates cost basis automatically and lets you select your preferred method.

Wash sales in Australia

Australia has no formal wash sale rule with a specific timeframe like the US 30-day rule.

However, the ATO uses Part IVA anti-avoidance provisions to target wash sales based on intent:

• Selling at a loss and immediately rebuying the same asset to claim a tax benefit = wash sale
• ATO uses "advanced analytics" to identify suspicious patterns
• Penalties: Additional tax, interest, and penalties

Safe approach: Wait 45+ days before repurchasing the same asset after selling at a loss.

The ATO specifically lists wash sales among targeted schemes in its 2025 compliance program.

Personal use asset exemption

The ATO allows a CGT exemption for personal use assets acquired for $10,000 or less.

Requirements (all must be met):

• Acquisition cost $10,000 or less
• Crypto acquired primarily for personal use (not investment)
• Used directly to purchase goods/services (not converted to AUD first)
• Used within a short timeframe (same day or within two weeks)

Critical ATO Position: The ATO explicitly states it is "unlikely that a taxpayer would genuinely satisfy the personal use asset exemption."

In practice, if you held crypto hoping it would increase in value, it's an investment—not personal use.

Important: Capital losses on personal use assets cannot be used to offset other gains.

Key deadlines (2025-26 financial year)

Important: Australia's financial year runs July 1 – June 30, not January – December. Plan your tax-loss harvesting before June 30.

How the ATO tracks your crypto

The ATO's data-matching program (running 2014-2026) collects data from Designated Service Providers (exchanges) including:

• Personal information (name, address, DOB, contact details)
• Account data (status, linked bank accounts, wallet addresses)
• Transaction data (date, time, type, amounts, balances)

Exchanges participating: Binance, CoinSpot, CoinJar, and others operating in Australia.

Scale: 700,000 to 1.2 million individuals affected per financial year.

The ATO cross-references this data with tax returns to identify non-compliance. They already know what you traded on centralized exchanges.

Step by step: filing Australian crypto taxes with Netrunner

• Connect your wallets — Link all Solana wallets you used during the financial year
• Wait for indexing — Netrunner indexes ~60,000 transactions in about 5 minutes
• Review transactions — Check the dashboard for any requiring attention
• Fix Unknown labels — Use bulk labeling to categorize transactions Netrunner couldn't auto-identify
• Select financial year — Choose July 1 – June 30
• Generate reports — Export capital gains report and income summary
• File your return — Use the reports to complete your tax return via myTax or provide them to your accountant

What you should see

• Capital gains summary showing total gains, losses, net position, and holding periods
• Income summary showing staking rewards, airdrops, and other income
• ATO-compatible format ready for myTax or your tax agent
• Full transaction history with cost basis calculations for your records

FAQ

Do I pay taxes on crypto-to-crypto trades in Australia?

Yes. Swapping SOL for USDC, trading tokens on a DEX, or exchanging one NFT for another—all are CGT events. The ATO treats these as asset disposals.

What's the 50% CGT discount and how do I get it?

Hold your crypto for more than 12 months before selling. You'll only pay tax on half the capital gain. This only applies to individual investors—not traders or businesses.

Can I use HIFO in Australia?

Yes. Unlike some jurisdictions, Australia allows investors to choose their cost basis method: FIFO, LIFO, HIFO, or Specific Identification. However, if you're classified as a trader, only FIFO is permitted.

What if I have losses? Can I carry them forward?

Yes. Capital losses can offset capital gains from crypto, shares, property, or other assets. If losses exceed gains, you can carry them forward indefinitely to offset future gains. You cannot use capital losses to offset regular income.

Does Australia have a wash sale rule?

No formal rule with specific timeframes. But the ATO uses anti-avoidance provisions to target wash sales based on intent. If you sell at a loss and immediately rebuy, expect scrutiny. Wait 45+ days to be safe.

Do I qualify for the personal use asset exemption?

Probably not. The ATO states it's "unlikely" most taxpayers qualify. You must have acquired the crypto primarily for personal use (not investment), spent it directly on goods/services within a short timeframe, and the acquisition cost must be under $10,000. Holding crypto hoping it increases in value = investment.

Why does the ATO already know about my trades?

Data-matching program. The ATO collects transaction data from Australian exchanges (Binance, CoinSpot, CoinJar, etc.) covering 700,000 to 1.2 million Australians per year. They cross-reference this with tax returns.

How to handle transactions with unknown transaction labels?

Some transactions can't be auto-labeled—especially complex DeFi interactions or transactions with missing metadata. Review these manually and apply the correct label.

How to handle transactions with a missing cost basis?

If you transferred crypto from another wallet or exchange without importing history, Netrunner may not have the original purchase price. You can manually set the cost basis or import additional transaction history.

What is the difference between staking rewards and capital gains?

Staking rewards are ordinary income (no 50% discount), not capital gains. Make sure staking transactions are labeled correctly. The distinction affects your tax bill.

How long is the holding period for a discount?

For the 50% CGT discount, you must hold for more than 12 months. Netrunner tracks acquisition dates automatically—verify they're correct for assets transferred from other wallets.

What's the tax deadline?

31 October for the financial year ending 30 June. If you use a registered tax agent, you may get an extension.

Is wrapping tokens taxable?

Yes. The ATO confirmed that wrapping (e.g., SOL to wSOL) is a disposal and triggers CGT.

2025-26 updates to watch

• New tax rates — From 1 July 2024, reduced rates for middle brackets (16% replaces 19% for $18,201-$45,000; 30% replaces 32.5% for $45,001-$135,000)
• Data-matching program extended — Through 2025-26 financial year, affecting 1.2 million Australians
• Stricter enforcement — ATO targeting wash sales and unreported transactions with increased penalties
• Global collaboration — ATO sharing data with international tax authorities

File Your Solana Taxes Without the Headache

Tracking crypto taxes manually breaks at a few hundred transactions. DeFi swaps, staking rewards, NFT trades, LP positions—each one needs cost basis calculations in AUD and proper holding period tracking.

Netrunner handles this automatically for Solana.

Connect your wallets, wait a few minutes for indexing (~60,000 transactions in ~5 minutes), and get accurate capital gains, income, and expense reports ready for filing.

What you get:

• Auto-labeling for swaps, staking, LPs, NFTs, and DeFi transactions
• FIFO, LIFO, and HIFO cost basis methods
• Automatic 12-month holding period tracking for the 50% CGT discount
• ATO-compatible exports
• Support for Coinbase and Binance imports

Free plan: Up to 30,000 transactions. No credit card required.

Pro plan: $189 AUD/year for up to 100,000 transactions with full reporting.

Save more. Do less.

Get started at netrunner.tax →

Disclaimer: This information is for general educational purposes only. It should not be taken as constituting professional advice from Netrunner. You should consider seeking independent legal, financial, or taxation advice to check how this information relates to your unique circumstances.

Updated on: 09/03/2026