Crypto asset payments from your employer
If you receive crypto assets as payment directly from your employer for your employment or services, you must treat the payment as assessable income. When you receive the crypto asset, keep a record of the market value in Australian dollars (AUD). Add this amount to your assessable income when you complete your tax return.
If you receive a crypto asset payment from your employer, they must still meet PAYG withholding and superannuation obligations for these payments.
If you receive crypto assets from your employer under a salary sacrifice arrangement, see Crypto assets used in business.
Crypto asset payments from a third party
If you receive a crypto asset payment from a third party that relates to your employment or services, you must treat the payment as assessable income.
A third party is an entity that is not your employer. For example:
- a company you worked with in the course of your employment
- an event sponsor
- an individual fan or supporter.
Receiving a crypto asset payment from a third party that relates directly to your employment or services is different to receiving a gift or donation of crypto assets. When the payment is clearly related to your employment, it is not a gift or donation. You must treat it as assessable income.
When you receive the crypto asset from the third party, keep a record of the market value in Australian dollars (AUD). Add this amount to your assessable income when you complete your tax return.
Example: payment from third party is assessable income and not a gift
Olivia is employed as a professional basketball player. Her team advertises an address where fans can send Bitcoin (BTC) to Olivia in appreciation of her performances on the court.
Fiona is a fan who enjoys watching Olivia play and sends her 0.10 BTC in response to Olivia's performance on 20 January 2025.
Olivia includes the market value of the 0.10 BTC (at 20 January 2025) as assessable income in her 2024–25 tax return as 'other income'. Olivia’s cost base for the 0.10 BTC will be the same amount as the income she declares.
The payment from Fiona is not a gift as it directly relates to Olivia's employment of playing professional basketball.
When Fiona disposes of the 0.10 BTC, she must calculate whether she has a capital gain or capital loss. This is based on whether the price of the BTC is higher or lower than when she acquired it.
End of example
Example: crypto asset payment from a third party
Dean works for a blockchain startup called BlocLync. He works on a joint project between BlocLync and another company called ABYZ Pty Ltd. Dean doesn’t work for ABYZ Pty Ltd directly so they are considered a third party.
ABYZ Pty Ltd is impressed with Dean's contribution and wants to reward him for his efforts. ABYZ Pty Ltd sends Dean 0.5 ETH directly to his personal wallet.
Dean keeps a record of the market value of the 0.5 ETH in AUD at the time he receives it. He adds this amount into his assessable income for the income year when he completes his tax return.
End of exampleDisposing of the crypto asset payment
If you dispose of a crypto asset from your employer or the third party, you may trigger a capital gains tax (CGT) event and have a CGT obligation.
You calculate any capital gain or capital loss when you dispose of the crypto asset. You will need to work out the cost base of the asset. In circumstances where you have received the crypto asset without payment, the first element of the cost base will usually be the market value of the asset at the time you received it.
For more information, see Calculating your CGT.