Australia is known for its crypto-friendly environment, but recent legal developments may completely change how Bitcoin is taxed in the country.
In May 2025, a significant ruling by Victorian Magistrate Michael O’Connell in a Bitcoin theft case suggested that Bitcoin could be recognized as Australian currency, not property. This landmark statement has sparked intense debate across the crypto community and tax authorities.
Adrian Carter, a co-defendant in the case, said:
“It was held that Bitcoin is Australian money. That is, it is not a CGT asset. Therefore, acquisitions and disposals of Bitcoin have no tax consequences.”
If Bitcoin is officially reclassified as currency, this could eliminate capital gains tax (CGT) on BTC transactions and result in the government owing nearly AUS$1 billion (approx. US$640 million) in past tax collections.
Not yet. The ruling is under appeal and has not been officially regulated. While the decision received attention, the Australian Tax Office (ATO) has not updated its guidance. Until higher courts confirm Bitcoin as legal tender, the existing tax framework remains in place.
Despite rumors, there are no loopholes in the current regime. Even if investors hope for CGT exemptions, the law remains unchanged until Bitcoin is officially recognized as currency by a higher court and accepted by the ATO.
Unless Bitcoin is formally reclassified, Australian investors and businesses must follow the existing crypto tax rules. The ATO continues to treat digital assets as property, not money, and capital gains tax still applies to all crypto-related transactions.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
While XRP now trades around $2.97 USD, traders are weighing Ripple’s legal timeline as closely…
The long-running debate over XRP’s decentralization has resurfaced, but this time, lawyer and well-known XRP…
Bitcoin has a way of moving in rhythms, and many traders are paying close attention…
I’ve been watching PancakeSwap closely since yesterday, and the CAKE price movements have been nothing…
When a whale moved 312,233 SOL into Coinbase Institutional, traders sat up straight. That is…
The SEC missed its Thursday deadline to decide on Canary Capital’s spot Litecoin ETF, with…