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Author: Admin | 2025-04-28
Protocols: No tax unless you're paying in crypto, in which case, potentially Capital Gains Tax.Selling or swapping NFTs: Capital Gains Tax, although if you're selling NFTs as a trader, this could be viewed as additional income, and Income Tax would apply.Buying NFTs: Capital Gains Tax (if you buy with crypto - which is the only option for most). Tax free if you buy with AUD.Staking on DeFi protocols: Income Tax if you earn new coins or tokens. Capital Gains Tax if tokens accrue value.Yield farming DeFi protocols: Income Tax if you earn new coins or tokens, Capital Gains Tax if your tokens instead accrue value.Earning liquidity tokens from DeFi protocols: Income Tax or Capital Gains tax depending on whether you're earning new coins or increasing the value of one asset.Adding liquidity to liquidity pools: Capital Gains Tax if you receive a token in exchange for your liquidity.Removing liquidity from liquidity pools: Capital Gains Tax if you exchange a token to remove your liquidity.Earning through play/engage to earn DeFi protocols: Income Tax.Profits from DeFi margin trading and options protocols: Capital Gains Tax.We recommend speaking with an experienced crypto accountant for clear guidance on DeFi tax to remain compliant.Earning from DeFi protocolsINCOME TAX Earning new coins or tokens from DeFi? Anytime you're seen to be 'earning' from DeFi - whether that's new coins or tokens - the ATO views this as assessable income and you'll pay Income Tax based on the fair market value of the assets in AUD on the day
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