Crypto tax losses in Australia: what they can reduce, and what they cannot
Investors often know they sold at a loss but are not sure what that loss actually helps with. In this estimator, capital losses reduce capital gains. They do not directly reduce staking income.
The plain-English answer
If a disposal creates a capital loss, the loss is applied against capital gains inside the estimate. It is not treated as a direct offset against ordinary income from staking receipts.
Why the distinction matters
Many retail investors combine losing disposals with staking income in the same year and expect one number to cancel the other out. The estimator separates those categories so the result stays honest about what is doing what.
Worked example
If you sold one token at a loss but also realized gains on another token, the loss can reduce the gains. If you also received staking rewards, those rewards still sit in ordinary income in this version.
Where this breaks down
This page explains the current estimator treatment only. If you need full-year loss carry-forward analysis beyond the current scenario or more complex entity treatment, this tool is not the full answer.
Tax Accuracy & Sources
General information about crypto tax in Australia for individual investors. Not tax advice.