Are NFTs taxable in Australia?

Follow us on Google News:
 Are NFTs taxable in Australia?
Image source:


  • NFTs are popular across the world with assets like Beeple’s artworks and CryptoPunk characters bought at high prices
  • In Australia, the taxation agency has similar obligations for NFTs and cryptocurrencies with additional rules for NFT creators
  • Since gaming projects are offering NFT assets, it is critical for young purchasers to know about their tax implications

A non-fungible token (NFT) is not like Bitcoin or an altcoin. Even though Bitcoin and altcoins like DOGE are blockchain-based tokens, there is no separate underlying item that these represent. NFTs, on the other hand, are representative tokens of items that can include players in a video game and digital artwork created by individuals like Beeple or projects like CryptoPunks.

In Australia, almost everything related to the crypto industry falls under the classification ‘crypto assets’. The Australian Taxation Office (ATO) includes Bitcoin, altcoins, and NFTs in the said categorisation. How does the ATO levy tax on these items? Let us explore the taxation of NFTs in Australia.

NFT tax in Australia

First, yes, NFT assets are taxable in the country. Next, the ATO specifies that tax aspects depend on how the NFT asset is used. For an individual who acquires an asset, either directly from the creator or by using services of an intermediary like OpenSea, the subsequent sale can trigger a capital gains tax (CGT) event. It means any profit made by selling the NFT attracts a CGT levy. The ATO also mandates that every person dealing in crypto assets must maintain records.

Second, there are tax implications for NFT creators. For example, when the creator of the asset sells it, the transaction is considered a business income. Besides, because NFTs can provide commission in the form of royalty to the creator on every subsequent transfer, all such commissions are also business income. Lastly, if an NFT is acquired by a business and then sold at a profit, the capital gains tax must be paid. That said, the ATO allows any capital losses to be adjusted against capital gains.

Why you should care

Paying taxes is an obligation, and any evasion or false reporting can lead to heavy penalties. Since many young investors are active in the crypto sector, it is critical for them to understand how the ATO treats crypto assets. CGT becomes payable on every profitable transaction, even when one asset is exchanged for another, like BTC for ETH. That said, the sector faced severe headwinds in 2022 with prices of both cryptocurrencies and NFTs coming under intense pressure.

Bitcoin price

Data provided by

Bottom line

In some countries, the tax implications of crypto assets is a hazy subject, but not in Australia. Assets, including NFTs, attract a CGT levy, and the ATO mandates proper record-keeping. Since many gaming projects have launched NFT assets in the form of avatars and in-game items, purchasers of these, especially youth, should be extra cautious about tax implications.

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK