NFT tax in Australia: CGT rules most NFT holders miss
NFTs attract the same CGT framework as other crypto assets, but the two-sided nature of NFT trades — disposing of crypto to buy, then disposing of the NFT to sell — means two separate CGT events can arise from a single transaction.
NFTs are CGT assets
The ATO classifies NFTs as CGT assets. That means every disposal — selling an NFT for AUD, swapping it for another NFT or token, or gifting it — is a CGT event. Your taxable gain is the proceeds minus the cost base of the NFT.
Buying an NFT with crypto triggers a disposal
When you pay for an NFT using ETH, SOL, or any other cryptocurrency, you are disposing of that crypto. The disposal of the crypto is a separate CGT event assessed at the AUD market value of the crypto at the time of the transaction.
Selling an NFT creates a CGT event
If you later sell the NFT, that is a second CGT event on the NFT itself. The cost base is the AUD value of the crypto you spent to acquire it. If you held the NFT for more than 12 months, the 50% CGT discount may apply if you are an individual investor.
Minting and creating NFTs for sale
If you mint or create NFTs as part of a business or profit-making activity, proceeds may be treated as ordinary income rather than a capital gain. The line between hobby and business depends on scale, repetition, and intent. This estimator covers investor scenarios only.
Quick single-transaction estimate
Enter a single buy-and-sell scenario to see your estimated CGT impact.
Frequently asked questions
Are NFTs taxable in Australia?
Yes. The ATO treats NFTs as CGT assets. Disposing of an NFT — by selling it for AUD or swapping it for another asset — triggers a capital gains tax event. The gain or loss is the difference between your proceeds and your cost base.
Is buying an NFT with crypto a taxable event?
Yes. When you use crypto to purchase an NFT, you are disposing of the crypto. That disposal is a CGT event on the crypto side, separate from any future gain or loss on the NFT itself.
Related guides
Tax Accuracy & Sources
General information about crypto tax in Australia for individual investors. Not tax advice.