Gifting crypto in Australia is treated as a disposal at market value — meaning CGT may apply even though no money changes hands. This guide covers the rules, worked examples, and the few exceptions that apply.
Many people assume that if no money changes hands, there's no tax. This is incorrect under Australian law. The ATO treats a gift of crypto as a disposal — you are deemed to have sold the crypto at its market value on the date of the gift, regardless of the fact that you received nothing in return.
This means a capital gain (or loss) arises if the market value on the gift date is higher (or lower) than your original cost base. That gain is subject to CGT in your hands, not the recipient's.
| Step | Detail | Example |
|---|---|---|
| 1. Cost base | What you originally paid for the crypto (including fees) | $3,000 |
| 2. Market value at gift date | AUD value on the day you transferred it | $9,500 |
| 3. Gross capital gain | Market value minus cost base | $6,500 |
| 4. 50% CGT discount | Applies if held more than 12 months | −$3,250 |
| 5. Taxable capital gain | Added to your income and taxed at marginal rate | $3,250 |
To determine the market value on the gift date, you'll need the AUD price of the crypto at that specific date and time. Most major exchanges publish historical price data, and some crypto tax software can calculate this automatically.
The recipient does not pay tax when they receive the crypto gift. Australia does not have a gift tax. However, the gift establishes a cost base for the recipient's own future CGT obligations:
Spouse transfers: In limited circumstances, transferring a CGT asset to a spouse may be done at cost base (rather than market value) under the marriage/de facto rollover provisions — meaning no immediate CGT is triggered. However, this is a technical area with specific conditions, and the gain is merely deferred rather than eliminated. Speak with a registered tax agent before structuring a spousal transfer specifically to defer a gain.
Inheritance: When crypto is passed on through a deceased estate, no CGT is triggered at the time of death. The beneficiary acquires the crypto with specific cost base and timing rules that depend on when the deceased originally acquired it. This is an area where the rules are nuanced and professional advice is worth obtaining.
Donating crypto to a registered Deductible Gift Recipient (DGR) organisation has two potential tax effects:
For each crypto gift you give, keep records of:
Enter your cost base and the market value at the gift date to see your capital gain and estimated tax.
Crypto Tax Calculator →This is the rule that surprises people who assume a gift produces no tax because no money changed hands.
When you dispose of a CGT asset for nothing, or for less than its market value, and the dealing is not at arm's length, the capital proceeds are generally taken to be the market value of the asset at the time of disposal — not what you actually received.
So gifting one bitcoin worth $100,000 to a friend produces the same capital proceeds as selling it for $100,000. You may have received nothing, but you are treated as though you received full market value. The tax is calculated on that figure, and you pay it from other money.
This is the single most important thing to understand before gifting appreciated crypto. The generosity is yours; so is the tax bill.
Gifting crypto to a child does not avoid the CGT event for you — the market value substitution rule applies regardless of who receives it.
It can also create complications for the recipient. Income earned by minors from property transferred to them may be taxed under rules designed to discourage income splitting, at rates considerably higher than ordinary marginal rates. If you are contemplating transferring assets to a child, take advice first.
Transfers between spouses are not automatically exempt either. The main relief in this area applies to transfers made under a court order or a binding financial agreement on marriage or relationship breakdown, where rollover relief may apply. An ordinary gift between spouses generally does not qualify.
Gifting cryptocurrency is a disposal for capital gains tax purposes, and because the market value substitution rule applies to non-arm's length dealings, you are treated as having received full market value even though you received nothing.
Calculate the gain before you transfer, check the holding period, give the recipient a written record of their cost base, and set aside money for the tax. Transfers to children and spouses carry additional complications rather than fewer.
This page is general information only and is not tax advice. Speak with a registered tax agent before gifting a substantial holding.
A disposal is what triggers a CGT event — not withdrawing dollars. Swapping one coin for another is the case most often overlooked.