Crypto & Shares CGT Australia: Parcel Selection & Capital Losses (2026–27)
Learn how Australian CGT applies to crypto and shares, including cost base, parcel selection, capital gains, capital losses and record-keeping.
- ✓ Disposing of shares, ETFs, or cryptocurrency triggers a CGT event in the financial year the contract or swap occurs.
- ✓ Holding share parcels or crypto assets for longer than 12 months (365 days) unlocks the statutory 50% CGT discount.
- ✓ Taxpayers can choose individual share parcel matching methods (FIFO, LIFO, or Highest In First Out) to minimize taxable net capital gains.
- ✓ Capital losses from stock or crypto trading can ONLY offset capital gains—they cannot be deducted against ordinary salary income.
- ✓ Carried-forward capital losses never expire and must be offset against gross capital gains BEFORE applying the 50% CGT discount.
Investing in Australian equities (ASX stocks), Exchange-Traded Funds (ETFs), international shares, and digital assets (cryptocurrency) is a major wealth builder. Under Australian Taxation Office (ATO) legislation, any disposal of shares or crypto triggers a Capital Gains Tax (CGT) event under Part 3-1 of the *Income Tax Assessment Act 1997*.
This guide explains parcel matching methods, capital loss carry-forward rules, ETF AMMA tax statements, and the 50% CGT discount.
1. When Does a CGT Event Occur on Shares & Crypto?
A reportable CGT event occurs whenever you:
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1
Sell shares or crypto for fiat currency (e.g. AUD).
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2
Swap one cryptocurrency for another (e.g. BTC to ETH).
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3
Gift or transfer ownership of shares or crypto to another person.
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4
Use crypto to pay for goods or services (unless qualifying under personal use asset rules below $10,000).
2. Share Parcel Matching Methods: FIFO, LIFO & HIFO
When you buy shares or crypto in multiple tranches at different prices, the ATO permits investors to choose which specific asset parcels are sold.
3 Main Parcel Selection Methods:
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First-In, First-Out (FIFO): Assumes the oldest shares bought are the first sold.
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Highest-In, First-Out (HIFO): Sells highest cost parcels first to maximize cost base and minimize immediate capital gain.
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Specific Parcel Selection: Specifically identifies parcels held for >12 months to maximize 50% CGT discount eligibility.
3. ATO Capital Loss Offsetting Rules
If you sell shares or crypto at a loss, you generate a capital loss.
Strict Statutory Loss Rules:
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Capital losses CANNOT be offset against your salary, wages, or business income.
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Capital losses MUST be subtracted from gross capital gains in the current financial year.
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Unused capital losses carry forward indefinitely to future tax years.
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Capital losses are subtracted BEFORE applying the 50% CGT discount!
4. Calculate Your Shares & Crypto CGT Liability
Estimate your gross capital gains, cost base adjustments, loss offsets, and 50% discount tax payable using Calcivo's Capital Gains Tax Calculator.
Frequently Asked Questions
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