Cryptocurrency isn’t governed by typical investment income rules. It’s treated by the ATO as property, meaning it comes under capital gains tax rules. So when selling crypto, you get taxed on the difference between the value you bought it for, and its market value at the time of the sale. If your cryptocurrency has grown in value, you’re making a capital gain, and you pay CGT on the profit of the sale. You must declare this capital gain on your annual tax return. If you make a loss on the sale, you’re required to report the loss on your tax return.