Crypto Staking Rewards and Australian Tax
Staking pays you in tokens, not dollars — but the ATO still generally treats those rewards as income when you receive them. Watch this PoliceTax explainer before you lodge.
Video summary
The short version of how staking rewards are taxed in Australia.
Crypto staking rewards are generally treated as ordinary income in Australia. You include the Australian dollar value of the rewards in your assessable income for the year you become entitled to them — not the year you finally cash out. The tokens you receive then take that same value as their cost base, so when you later sell, swap or spend them, any movement in value is dealt with separately under the capital gains tax rules. Because Australian exchanges report to the ATO, accurate records of each reward date, quantity and AUD value matter.
Two separate tax events
Staking usually creates an income event first, and a capital gains event later. They are not the same thing.
1. Income when rewards are received
The Australian dollar value of the reward at the time you become entitled to it is generally assessable income.
- Declared in the financial year you receive or are credited the tokens.
- Applies even if you never convert the tokens to Australian dollars.
- Value is measured in AUD at the date of receipt, not at 30 June.
2. Capital gains when you dispose of them
The amount already declared as income becomes the cost base of those tokens for capital gains tax purposes.
- Selling, swapping or spending the tokens is a CGT event.
- Only the movement in value since receipt is a gain or loss.
- Holding period and your circumstances can affect any CGT discount.
This page provides general information only and does not take your personal circumstances into account. Crypto tax outcomes depend on the facts, including whether your activity is an investment or a business.
What to keep for your tax return
Australian exchanges report data to the ATO, so the figures in your return should match your own records.
Record every reward as it lands
Note the date, the token, the quantity received and the Australian dollar value on that date.
Download your platform reports
Export staking, transaction and fee statements from each exchange, wallet or DeFi platform you use — they are far harder to recover later.
Track the cost base of what you keep
Carry the declared value forward as the cost base so a later sale or swap is calculated correctly.
Bring it all to your tax appointment
Send the reports through with your other records and we will work through the income and CGT side together.
Crypto staking tax questions
The questions officers ask us most often about staking rewards.
Do I pay tax on crypto staking rewards in Australia?
Generally yes. The ATO treats staking rewards as ordinary income, so the Australian dollar value of the rewards at the time you become entitled to them is included in your assessable income for that financial year.
Is the reward taxed only when I convert it to Australian dollars?
No — that is one of the most common misunderstandings. The income is generally assessable when the reward is received or credited to you, even if you never convert it to Australian dollars and simply keep holding the tokens.
Do I get taxed twice when I later sell the staked tokens?
Not on the same amount. The value already declared as income becomes the cost base of those tokens. When you later sell, swap or spend them, only the change in value from that point is a capital gain or capital loss.
What records should I keep for staking?
Keep the date of each reward, the quantity of tokens, the Australian dollar value at that date, the platform or wallet involved, and any fees. Exchange and wallet reports make this far easier at tax time than reconstructing it later.
Related PoliceTax guides
More on investments, deductions and getting your return right.
Staked crypto this year?
Our tax specialists can work through your staking rewards, cost bases and disposals with you.