Why can staking rewards be taxable even if I do not sell the crypto in Australia?

The Australian Taxation Office generally treats staking rewards received by an investor as ordinary income when derived, while later disposals can have capital gains consequences.

The answer

The Australian Taxation Office generally treats staking rewards received by an investor as ordinary income when derived, while later disposals can have capital gains consequences.

What to do next

Record the date, amount and AUD market value of each reward and the later disposal details. Confirm the precise treatment for your own circumstances.

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Frequently asked questions

Is swapping reward tokens for another coin a tax-free transfer?

Generally no. Crypto-to-crypto exchanges are typically disposals for Australian CGT purposes.

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