Crypto donation tax in Australia: a deduction and a CGT disposal in one transaction

How the ATO treats crypto donations

When you donate crypto to a Deductible Gift Recipient (DGR), the ATO allows a deduction equal to the market value of the crypto on the date of donation. At the same time, the donation is treated as a disposal of the crypto asset, which means any capital gain between your original cost base and the donation value is a taxable CGT event. The deduction and the capital gain are calculated separately and appear in different parts of your tax return.

Worked example

You donate ETH worth AUD 1,000 to a DGR-registered charity. Your original cost base for that ETH was AUD 400. You have a capital gain of AUD 600 (AUD 1,000 disposal proceeds minus AUD 400 cost base). If you held the ETH for more than 12 months, the 50% CGT discount may apply, reducing the taxable gain to AUD 300. You also receive a tax deduction of AUD 1,000 for the donation. The net tax effect depends on your marginal tax rate.

Common pitfalls

The most important requirement is that the charity must be a registered DGR — not all charities qualify. You need to obtain and keep a receipt from the charity confirming the donation. You also need to document the fair market value of the crypto on the date of donation, which requires a contemporaneous price record. Donating to overseas charities or non-DGR organisations generally does not generate a deduction.

Using this estimator for donations

To model a crypto donation in this estimator, enter the transaction as a sell event at the market value on the date of donation. This captures the CGT disposal correctly. The tax deduction component should be tracked separately in your tax return as a charitable donation deduction — the estimator handles the CGT calculation only.

Quick single-transaction estimate

Enter a single buy-and-sell scenario to see your estimated CGT impact.

Frequently asked questions

Related guides