Crypto, Cards and 'Personal Use Assets': What the ATO Says

This is a short, dated pointer to the Australian Taxation Office's own words on when crypto is — and isn't — a 'personal use asset' for capital gains tax (CGT). Quotes are reproduced verbatim from ato.gov.au (last updated 22 June 2026, retrieved 24 June 2026) and linked to the source.

General information only — not tax advice. Tax depends on your circumstances and the rules change. Check ato.gov.au or a registered tax agent.

When crypto can be a 'personal use asset'

The ATO's definition:

A crypto asset (such as Bitcoin, a cryptocurrency) is a personal use asset if you keep or use it mainly for personal use, for example, to buy items for personal use or consumption.

And the timing test:

The relevant time for determining if a crypto asset is a personal use asset is when you dispose of it:

• A crypto asset you acquire and use in a short period of time to buy items for personal use or consumption is more likely to be a personal use asset.
• A crypto asset you acquire and hold for some time before you use it, or only use a small proportion of it, to buy items for personal use or consumption is less likely to be a personal use asset.

Source: Crypto asset as a personal use asset (ATO, QC69954).

When it isn't — including crypto cards and payment apps

Crypto assets are not personal use assets when you keep or use them:

• as an investment
• in a profit-making scheme
• in carrying on a business.

Except in rare situations, a crypto asset isn't a personal use asset if you:

• exchange your crypto asset for Australian dollars (or for a different crypto asset) to buy items for personal use or consumption
• use your crypto asset to acquire and use a gift card or similar product that you then use to acquire items for personal use or consumption
• top up a prepaid debit card with crypto assets, which is converted into Australian dollars and you later use it to acquire items for personal use or consumption
• use a payment gateway or other bill payment intermediary to acquire the items on your behalf (rather than acquiring them directly with your crypto assets) – examples include Bitpay, Coinbase, Secure Pay, PayPal, Apple Pay and Square.

Source: ATO, QC69954 (same page).

The CGT exemption (in the ATO's words)

A capital gain on the disposal of a crypto asset is exempt from CGT if:

• it is a personal use asset
• you acquire it for less than $10,000.

Source: ATO, QC69954.

Read it at the ATO

For the authoritative, current version: Crypto asset as a personal use asset · Crypto asset transactions.

General information only — not tax advice; see ato.gov.au or a registered tax agent. ATO material is quoted under the ATO's copyright terms (© Australian Taxation Office for the Commonwealth of Australia). This page is independent and is not endorsed by or affiliated with the ATO or the Commonwealth.