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) that is endorsed at the time of the gift, you may be able to claim a deduction. Because crypto is a gift of property, not money, the deduction amount is not simply "whatever the market value was" the way a cash donation is — if the ATO would value the crypto at more than AUD 5,000, you generally need to obtain a formal ATO valuation to support the deduction claimed. 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 endorsed as a DGR — not all charities qualify, and endorsement status can change, so check it at the time of the gift. 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 — and if that value exceeds AUD 5,000, a formal ATO valuation is generally required to support the deduction, not just your own 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

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