Yes. Australians can legally buy, hold, sell and spend Bitcoin, and no Australian law bans it. It is not legal tender, though, and it is regulated. Businesses that exchange it must register with AUSTRAC. From 2027, platforms that hold it for customers will need a financial services licence from ASIC. The Australian Taxation Office (ATO) taxes it as an asset, not as money. The biggest recent change is the Corporations Amendment (Digital Assets Framework) Act 2026, which Parliament passed on 1 April 2026.
What changed in 2026
Platform licensing law passed (April 2026)
The Corporations Amendment (Digital Assets Framework) Act 2026 passed Parliament on 1 April 2026 and received Royal Assent on 8 April 2026. It creates two new kinds of financial product:
- Digital asset platforms (DAPs): services that hold digital tokens for clients and provide related platform services.
- Tokenised custody platforms (TCPs): services that hold underlying assets for clients and record them as digital tokens.
Operators will generally need an Australian Financial Services (AFS) licence that covers these products. ASIC's consultation release 26-245MR says the new laws start on 8 April 2027. Some other ASIC pages give 9 April 2027, so check ASIC's current guidance for the exact date. ASIC is consulting on draft standards for asset-holding, trading, settlement and financial requirements in Consultation Paper 392, which closes at 5pm AEDT on 27 November 2026.
Time left until 27 November 2026 · end of day UTC
ASIC's no-action period ended (30 September 2026)
In October 2025 ASIC updated its guidance INFO 225. It treats products such as stablecoins, wrapped tokens, tokenised securities and some digital asset wallets as financial products. ASIC first said it would not take action against affected businesses until 30 June 2026, then extended that date to 30 September 2026. By that date businesses had to apply for an AFS licence or vary an existing one. From 1 October 2026, firms that did not meet the conditions risk breaching financial services law. ASIC says penalties can include fines of up to 10% of annual turnover.
AUSTRAC's anti-money-laundering rules widened (31 March 2026)
Since 2018, businesses exchanging digital currency for money have had to register with AUSTRAC, Australia's financial intelligence agency. Under the AML/CTF reforms, from 31 March 2026:
- Existing digital currency exchange providers were automatically re-registered as "virtual asset service providers" (VASPs).
- New VASPs must apply for registration before they provide a service. AUSTRAC says assessment can take up to 90 days.
- Obligations for some other newly covered virtual asset services were deferred to 1 July 2026.
On 2 April 2026 AUSTRAC made its VASP register publicly searchable.
What this means if you hold Bitcoin
The 2026 laws regulate businesses, not individuals. Holding Bitcoin in your own wallet does not require a licence or registration. What changes for you is how to choose a provider:
- Search the AUSTRAC register. Any business exchanging crypto for Australian dollars should appear on AUSTRAC's public VASP register.
- Check ASIC's licence register for custody or yield products. If a provider holds your coins or offers stablecoins, wrapped tokens or yield products, check whether it holds or has applied for an AFS licence.
- Be careful with crypto ATMs. Since September 2025, every crypto ATM provider in Australia has operated under extra AUSTRAC registration conditions. These include a $5,000 limit on cash deposits and withdrawals, mandatory scam warnings and enhanced due diligence. AUSTRAC says people over 50 are among the most frequent crypto ATM users, and that many users aged 60 to 70 are scam victims. If someone you have met online tells you to deposit cash into a crypto ATM, treat it as a warning sign.
Does your Bitcoin move trigger tax?
Answer a few questions about what you did with your Bitcoin to see how the ATO rules in this article treat it.
What did you do with your Bitcoin?
- Bought it and still hold it in my own wallet → No disposal yet
- Moved it between wallets I own → Not listed as a disposal
- Received it as staking rewards → Ordinary income when received
- Used it mainly to buy items for personal use → next question
- Sold it, swapped it for another crypto asset, spent it or gifted it → next question
Did you buy and use it mainly to buy items for personal use (not hold it as an investment), and did it cost $10,000 or less?
- Yes, personal use and it cost $10,000 or less → Gain may be disregarded
- No, I held it as an investment or it cost more → next question
As an individual, did you hold it for at least 12 months before the disposal?
- Yes, 12 months or longer → next question
- No, less than 12 months → CGT event, no 50% discount
When did the gain build up?
- Entirely up to 1 July 2027 → CGT event, 50% discount may apply
- Entirely after 1 July 2027 → Indexation and a 30% minimum tax
- Partly before and partly after 1 July 2027 → Your gain is split across the change
Holding Bitcoin in your own wallet does not require a licence or registration, and no CGT event has happened. Keep the date, AUD value, purpose and wallet details of each purchase.
Moving crypto between wallets you own is not among the ATO's listed disposal events. Keep records showing that you own both wallets.
The ATO treats staking rewards as ordinary income at their market value when you receive them. That value becomes the cost base; a later sale falls under CGT.
Gains on a personal use asset that cost $10,000 or less are disregarded. Crypto held as an investment does not qualify, even if you sometimes spend it, and losses on personal use assets cannot offset other gains.
Selling, swapping, spending or gifting Bitcoin is a CGT event that must be reported even when no cash is received. Held for less than 12 months, it does not qualify for the 50% CGT discount.
Individuals who hold a CGT asset for at least 12 months can claim the 50% CGT discount under current rules, and gains accrued up to 1 July 2027 keep it.
From 1 July 2027 the 50% discount for individuals, trusts and partnerships is replaced with cost base indexation, plus a 30% minimum tax on real capital gains. Recipients of certain government payments, such as the Age Pension and JobSeeker, are exempt from the minimum tax.
Gains accrued up to 1 July 2027 keep the 50% discount; later gains fall under indexation and the 30% minimum tax. The article suggests advice from a registered tax agent, because the split will matter.
This sorts your situation using the ATO rules described in the article only: it does not calculate any tax, cover businesses, trusts, trading as a business or other countries, and is not legal, tax or investment advice.
How Bitcoin is taxed in Australia
Bitcoin is an asset, not money
The ATO says crypto assets are not a form of money for tax purposes, so the general tax rules for assets apply. In most cases that means capital gains tax (CGT).
When a CGT event happens
A disposal can trigger a capital gain or loss when you:
- sell Bitcoin for Australian dollars or another currency
- swap Bitcoin for another crypto asset (you need its market value in AUD at the time)
- use Bitcoin to pay for goods or services
- gift it
The ATO says these events must be reported even when no cash is received.
Income, not capital gains
The ATO treats staking rewards and other rewards from consensus mechanisms as ordinary income at their market value when you receive them. That value becomes the cost base of the tokens. If you later sell them, any gain or loss above that cost base falls under CGT.
The CGT discount, and what changes from 1 July 2027
Under current rules, individuals who hold a CGT asset for at least 12 months can claim the 50% CGT discount. Crypto held as an investment counts.
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 became law in June 2026. From 1 July 2027 it replaces the 50% discount for individuals, trusts and partnerships with cost base indexation, and adds a 30% minimum tax on real (inflation-adjusted) capital gains. Gains accrued up to 1 July 2027 keep the 50% discount. Recipients of certain government payments, such as the Age Pension and JobSeeker, are exempt from the minimum tax. If you are thinking about when to sell, get advice from a registered tax agent, because the split between gains before and after the change will matter.
The personal use asset exemption is narrow
Crypto bought and used mainly to buy items for personal use can be a personal use asset. Gains on a personal use asset that cost $10,000 or less are disregarded. The ATO is clear that crypto held as an investment does not qualify, even if you sometimes spend it. Losses on personal use assets cannot be used to offset other gains.
GST
Since 1 July 2017, buying and selling digital currency has generally been disregarded for GST, so it is no longer taxed twice. That change came from the 2017–18 Budget measure "GST – removing the double taxation of digital currency".
Keep your own records
The ATO says exchange records alone are not enough. For each transaction, keep the date, the value in AUD, what it was for and wallet details. Keep records for five years from the latest of when you prepared them, when the transaction was completed or when the CGT event happened.
Quick answers
Is Bitcoin legal tender in Australia? No. You can pay with it where a seller accepts it, but nobody is required to accept it.
Do I need a licence to buy or hold Bitcoin? No. Licensing and registration apply to businesses that provide exchange, custody or platform services.
Do I pay tax if I move Bitcoin between my own wallets? Moving crypto between wallets you own is not listed among the ATO's disposal events, but keep records showing that you own both wallets.
These rules are current as of 25 October 2026; they are general information, not legal, tax or investment advice.
