Is There A Tax On Transferring Crypto Between Your Own Wallets?

  • January 6, 2026
  • 4 min read
crypto tax article graphic

Transferring cryptocurrency between wallets you own is generally not taxed in Australia, because it is not treated as a disposal for capital gains tax (CGT) purposes as long as you remain the beneficial owner. However, any network or gas fees paid in crypto as part of that transfer can themselves be taxable disposals.

How the ATO Treats Internal Wallet Transfers

The Australian Taxation Office (ATO) treats cryptocurrency and other crypto assets as property for tax, so CGT usually applies when you dispose of them. Moving crypto from one of your wallets to another is not disposal if you keep beneficial ownership of the asset throughout the transfer. 

In practice, this means that moving crypto:

  • Between two exchange accounts in your name (for example, from Bitcoin to CoinSpot)
  • From an exchange to self-custody wallet you control
  • Between hot wallets, hardware wallets, or other personal wallets you control. 

is not  a taxable event in itself and does not, by itself, create CGT.

When An Internal Transfer Becomes Taxable

Even though the transfer of the main amount is usually tax-free, parts of the transaction can still trigger tax if they count as disposals. 

Key situations to watch:

  • Network / gas fees paid in crypto

– If you pay the transfer fee using cryptocurrency (for example, ETH for gas, or BTC as a miner fee), the portion of crypto used for the fee is treated as disposal and may create a capital gain or loss. 

– The gain or loss is based on the difference between your cost base for that small amount of crypto and its market value when you spend it as a fee. 

  • Fees paid in Australian Dollars

– If you pay atransfer fee in AUD ( for example, an exchange charges you a fiat fee rather than taking extra crypto), that fee is not a crypto disposal and does not trigger CGT on its own. 

  • Transferring to a wallet you do not own

– Sending crypto to someone else’s wallet (friend, family member, business or any third party) is treated as a disposal and is subject to CGT, even if no money changes hands. 

– The ATO treats this as a gift or payment, and you calculate your capital gain or loss using the asset’s market value at the time of transfer and your cost base. 

 

Record-keeping for Wallet-to-Wallet Transfers

Even though internal transfers are generally not taxed, accurate records are critical because they support your CGT calculations when you eventually dispose of the assets.

For consumers, it is sensible to keep:

  • Transaction hashes, wallet addresses, and timestamps for each transfer between your own wallets. 
  • Details of any fees paid, including the amount of crypto used, its AUD value at the time, and fiat fees charged. 
  • A running record of your cost base (purchase price plus associated costs) for each parcel of crypto, so you can correclty calculate gains and losses at disposal.

ATO guidance also ephasises keeping records for at least five years after lodging your tax return that include the relevant crypto transactions. 

Practical Tips for Crypto Users

Consumers can reduce complexity and potential tax exposure from internal transfers by planning how and when they move assets. 

Useful approaches include;

  • Consolidate holdings periodically into a smaller number of wallets you control, but avoid unnecessary on-chain moves than incur large gas fees in volatile markets. 
  • Whenever possible, pay exchange transfer fees in AU rather than in crypto to avoid creating extra, small CGT events. 
  • Use reputable Australian-focused tax tools or professional advice to reconcile wallet-to-wallet activity  across exchanges and self-custody wallets in line with ATO expectations. 

Nothing here is personal tax advice, so consumers should obtain advice from a registered tax agent or financial adviser for their specific circumstances under ATO rules.