Last Updated on September 1, 2022
Cryptocurrencies may be a discovery in your investment portfolio, but the profit arising from them is treated the same as any other asset. As far as I can remember, crypto has been a taxable event in Australia for nearly a decade. The first time ATO integrated digital assets into the tax law was back in 2014. Back then, the government’s idea was to make people view Bitcoin as a Capital Gains Tax asset rather than a “mysterious” virtual currency that leaves no tax footprints.
In the meantime, the crypto market has grown to an unprecedented extent. It’s not all about HODLing Bitcoin anymore. There is a whole new crypto world with multiple earning opportunities, such as derivatives, staking, lending, etc. At some point, you’ll understand that it’s impossible to keep track of all your transactions, especially If you’re involved in different types of activities and hold different types of cryptocurrencies at different time intervals.
That’s why I listed the best software tools designed for tax management that are or can be adjusted to the Australian tax framework. Impressed by how these pieces of software can ease your crypto life, I also prepared a compact guide on the factors you need to consider when choosing one.
- Exceptional ease-of-use and clear overview of multiple data;
- Localized adjustment for over 20 countries;
- Impecible integration with a large number of cryptocurrency exchanges;
- Support for over 6,000 different cryptocurrencies.
- A bit over-priced against the industry standard;
- Lacks crypto payment options.
Filling out tax reports can be intimidating on its own, so an easy-to-use tool can be a lifesaver. And, this is where Koinly truly shines. You can effortlessly import all trading data on the Koinly software and, in only 20 minutes, enjoy a clear view of all transaction details. This includes the amount you invested in crypto, a full summary of your income, and all capital gains and losses.
The way in which Koinly combines ease-of-import with neat data presentation makes this software one of the most popular tax tools on a global scale. The company behind the software operates from the USA but offers a specifically designed functionality for Australian traders.
For me, the best thing about Koinly is its ability to integrate over 700 crypto providers and both software and hardware wallets, including the local Australian favorites Swyftx and CoinJar. The software processes not only buy-and-sell transactions executed on global centralized exchanges but all other crypto-related activities with a tax impact too, such as mining, lending, airdrops, staking, etc.
The basic version of Koinly is free, but it comes without direct ATO integration, TurboTax and TaxACT imports, and comprehensive audit reports. To upgrade your account, you can choose a plan that will work best for your needs. Pricing is divided into three tiers (Newbie, Hodler, and Trader) in an annual price range between $49 and $179. The three account types differ in the number of transactions you can import, not the feature set you get.
- Exceptional accuracy in calculating taxes;
- Highly rated customer support;
- Intuitive interface;
- Competitive pricing.
- Low-tier accounts are feature-limited;
- NFTs aren’t covered with the first account tier;
- Adjusted to a small number of countries.
Cryptotaxcalculator has caught the eye of tax experts because of the accurate crypto reports it delivers. It’s one of my favorite tax-software solutions because of the enhanced user privacy. As you can see, this tax platform doesn’t retain your data on the platform servers.
Cryptotaxcalculator is tailored for the US and Australian tax jurisdictions. Similar to Koinly, it supports a wide net of crypto exchanges and non-custodial wallets, which enables Cryptotaxcalculator to cover the most complex tax events such as DEX transactions, margin trading, gas costs, and DeFi staking and lending.
In my opinion, there are two more reasons for the rapid success of Cryptotaxcalculator:
- The individualized approach toward users’ tax status.
- The tax-report transparency. You get a full explanation of how your crypto gains and losses have been calculated and what regulations have been used in the process.
That’s why, this software is ultimately popular among professional accountants, who can get a custom offer for a large corporate account. For individuals, Cryptotaxcalculator doesn’t offer a free software version or a trial period. Annual prices start from $49 and can go up to $299. The last tier supports up to 100,000 transactions a year.
- Free portfolio tracker;
- Useful preview and manual adjustment options;
- Library with crypto learning tools.
- Lack of professional assistance for reading tax reports;
- Lack of full integration with margin crypto platforms.
CoinLedger appeared on the scene in 2018 as a carefully-crafted project by three renowned professionals – David Kemmerer, Mitchell Cookson, and Lucas Wyland. The three of them previously worked on an automated trading system for market-value arbitrage across various crypto exchanges and faced a series of difficulties because of the lack of crypto tax tools.
So, the CoinLedger team came up with a workable solution for a fully-fledged crypto management system that offers fast tax software, a portfolio tracker, and an exquisite knowledge base consisting of tax-related educational materials, video tutorials, and eBooks.
I had an enjoyable experience with CoinLedger mostly because of the smooth workflow it establishes as a norm. First, you can complete the tax import within a few minutes, regardless of the exchange or wallets you’re using. The software will automatically classify the transaction chronologically and by their tax treatment. I also liked the option for manual classification, which isn’t the case with many other tax software alternatives.
When it comes to pricing, I could see that the CoinLedger team offers relatively fair deals. The price range is very similar to Cryptotaxcalculator, with the difference that the $300-tier gives you support for an unlimited number of transactions. And, this is exactly what makes CoinLedger the most attractive destination for high-volume day traders.
- Personal assistance with the highest tier;
- Affordable fee system with possibilities for discounts;
- Sleek integration with traditional tax reporting software;
- Useful tools for professionals.
- Limited to four countries (Australia, the USA, Canada, and India);
- Low integration with advanced crypto services like DeFi protocols and margin trading;
- No option for portfolio tracking.
BearTax follows a more traditional approach compared to all other solutions I’ve already listed. It runs as tax accounting software and works equally well for both individuals and professional accountants.
The software delivers a simplified process for calculating crypto taxes. You need to:
- Import the transaction data either through a CSV file or an API key.
- Get a clear view of the data classified by the system.
- Download and/or export the file to a traditional reporting tax processor.
What makes BearTax stand out among other tax software items is the affordable membership schedule. BearTax won’t ask you for payment until you get to step 3. Yet, similar to other software solutions of this caliber, BearTax will offer you a tier-based pricing plan based on your transaction volume. Believe it or not, it charges only $10 for the first account tier, which comes with a 20-transaction limit.
Still, I’m sure that BearTax high ranking lies in outstanding customer support. This piece of software entitles you to live-chat support with their Mr.Ted virtual assistant at any stage of your stay on the platform. I couldn’t believe that I got the necessary guidance in real-time. Last but not least, professional accountants can reach out to the company’s certified professionals for further assistance.
- One of the most accurate systems for generating tax reports;
- Seamless integration with all liquid centralized crypto exchanges;
- Real-time updates of ongoing changes imposed by all integrated exchanges;
- Easy-to-use portfolio tracker with distinguished charting functionalities.
- The API-import feature isn’t included with the free plan;
- Weak support for decentralized exchanges and ICOs.
As you can see, crypto tax software packages come at a certain price. Now and then, you may come across a free offer, but it doesn’t usually include sharing/downloading the completed tax reports.
Well, with CoinTacking, you can get a truly free beginner’s version. The free plan includes tracking for up to 200 transactions and 100 entries of tax and capital-gain reporting per year. I must admit that this no-fee policy worked pretty well for CointTracking. This software counts over 1,200,000 users and 25,000 corporate clients. As far as I can see, the paid plans are also on par with the industry standard, ranging between $10-$55 per month.
But, it’s not only pricing that gives CoinTracking a competitive edge. Apart from the intuitive import-to-download process, the software provides a pretty good portfolio tracker. The CoinTracking portfolio management tool allows you to monitor your open balances across various crypto exchanges with sophisticated visualization of the displayed data.
I liked how they synchronized all that data into a single coherent piece. Finally, CoinTracking enables professional accountants to set up a separate profile for each client.
- User-friendly design and smooth navigation, but not for absolute beginners;
- Adjustable tax systems for over 65 countries worldwide;
- Great coverage of advanced trading activities like futures, staking, etc.
- Low transaction limit on the first two tiers;
- Pricing plans aren’t suitable for high-volume traders.
Coinpanda is another popular software package that offers an all-in-one solution for settling your crypto-tax liabilities. Its strength lies in the integration with over 500 exchanges, digital wallets, and blockchains. In addition, Coinpanda fully covers the DeFi sector, trendy NFT marketplaces, and the increasingly growing metaverse.
I have the impression that large diversification is one of the greatest trends today. So, when choosing a tax software tool, the selection of integrated exchanges plays a crucial role for quite many next-gen traders. Apart from the massive network of crypto providers, Coinpanda makes every effort to keep up with other in-demand features offering fast provision to your tax reports and simplified data import.
While exploring for more detailed traits, I noticed that, unlike other tax-software items that are adjusted to the Australian legislation, this one could generate not one but three types of tax reports: Schedule D, Schedule 1, and Form 8949.
Apart from the crypto-tax field, Coinpanda also provides a fantastic portfolio tracker, accommodated on a neat and personalized dashboard. It offers a free plan with support for up 25 transactions, which is great. From what I could see on the pricing description, even the paid tiers are more favorable for low-scale traders.
- Highly trusted system with a strong corporate backup;
- Equally good solutions for both individuals and institutions;
- Used by government regulatory bodies;
- An unlimited number of free transactions.
- CSV parsing that accepts manual formatting only;
- Low-performing Auto-Sync functionality.
Established in 2018, TaxBit made headlines a few years later, announcing that the company raised $100 million and $130 million in two separate funding rounds. The cryptocurrency investors that contributed to this success included big industry names like Coinbase Ventures, PayPal, and Winklevoss Capital.
My point here is that TaxBit managed to build a 5 million user base thanks to the enhanced trust and the high DeFi support. This is quite a legit opinion for me since trust is an essential ingredient when uploading your income data online.
TaxBit defines itself as a Single System of Record for Digital Assets Tax and Accounting and promotes the idea of crypto for everyone.
The software allows you to use a free version of their platform and, most importantly, it doesn’t limit you to a certain number of transactions. The difference is that paid plans are feature-superior against the basic tier. Most strikingly, the basic tier can generate tax forms only for the platform-supported exchanges and wallets. The catch is that TaxBit doesn’t come with many in-platform integrated exchanges. There are only 20 in total, so if you want a tax-form generator for all other existing platforms, you must go with the paid membership, which starts at $50.
The public attention apart, I genuinely like this software design. It’s just incredible how it displays real-time information about the tax implications of your transactions.
- Industry-grade security standards (SOC 1 & 2);
- Integration with both professional and private tax software systems;
- Automatical traceability of funds that move across different crypto wallets and exchanges;
- Excellent functionality for manual entries.
- No direct integration with next-gen blockchains and DeFi establishments;
- Pricing plans aren’t suitable for small businesses.
Ledgible is a tax-software package designed for tax experts, institutions, and CPAs. It helps professionals to deliver crypto data accurately to the traditional digital systems they use. Ledgible is one of the most sophisticated crypto software platforms I’ve seen and perhaps one of the very few professional-first crypto-tax solutions.
Its client base consists of leading accounting firms, such as SurePrep, Mazars, and Cohen & Co. Ledgible is the only blockchain management platform with a certified partnership with traditional accounting platforms, such as QuickBooks and Xero. As you can see, the company focuses on the US market but it also works with tax systems of other countries, where the status of crypto is highly regulated.
Because of blockchain diversity, tax obligations are becoming more and more complicated even for digital tax wizards. So, it’s fascinating how Ledgible has found a workable approach to simplify the management of cross-account transactions. The team processes on-chain data by implementing functionalities from the traditional accounting system combined with modern algorithmic solutions.
As a result, tax professionals can monitor, track the progress, and report all crypto assets from a single entry point — directly from their client’s dashboard. Supported crypto exchanges and crypto wallets are automatically imported to the Ledgible system, but clients can also use the advanced option for manual uploads of more obscure crypto services.
- Suitable for beginners;
- Excellent portfolio tracking system;
- Impecable lolalization.
- Tight transaction limits;
- Some features aren’t useful for occasional users.
Accointing was founded in 2018, at the same time as a series of tax software tools specialized in crypto. Yet, it was the first software of this kind I encountered. So, I guess it managed to enter the market faster than its direct competitors. From this point, I can say that Accointing is still a decent solution for handling your tax liabilities arising from crypto trading.
It offers the standard combo of a portfolio tracking system and a tax reports generator, which is well-connected with over 400 exchanges and 20,000 digital assets. Also, Accointing has recently started supporting NFTs and it’s doing a great job gathering data from popular NFT marketplaces. My opinion is that Accointing delivers better service of the portfolio-tracking part.
It gives you a unique data visualization with a focus on social trading. You can share your “shining” portfolio allocations across various social media channels and monitor your market performance against other Accointing users.
Finally, this tax-software item has a fair and transparent pricing schedule. Accounting offers a free version that comes with the full feature set but limits you to 25 taxable transactions. Prices for paid plans are also acceptable, but even the highest tier doesn’t offer an unlimited number of transactions.
- An option for a custom Enterprise account depending on your company’s needs;
- Excellent Tax Loss Harvesting tool;
- Great customer support;
- Crypto payments are available for annual plans.
- Some of the major exchanges aren’t supported for automatic integration;
- Paid plans start at a high cost.
Cryptio is another refined crypto accounting platform designed for professional use. I accessed the platform from the account of a certified accounting firm, and I must admit, I was impressed by the overall performance.
It’s incredible how seamlessly Cryptio transforms digital asset data into auditable formats for tax fillings and treasury. So, the fact that Cryptio has some of the largest blockchain brands (Aave, The Sandbox, and Metamask) as clients didn’t surprise me at all.
From what I could see as a platform guest, Cryptio connects with various DeFi exchanges and wallets, which is of great help for accountants to capture the full picture of the trading activities of their clients. For achieving real-time traceability of the transaction flow, Cryptio employs a mechanism for automated retrieval of the full transaction history directly from the supported wallets/ exchanges.
This aggregation method isn’t the only feature that gives Cryptio a professional edge. The platform utilizes a GAAP IFRS-compliant valuation system for price sourcing in partnership with Kaiko, a world-renowned provider of real-time crypto historical data, aggregated prices, and order books. On top of this, Cryptio supports API integration with market-dominant accounting platforms such as QuickBooks and Xero.
- User-friendly design suitable for all types of users;
- Full-feature accounting service with support for all existing crypto exchanges;
- Highly-responsive customer support.
- No free plan or a trial version;
- NFTs and DeFi are available only with the highest account tier.
Unlike the majority of software platforms, which developed tools for tax support as part of their portfolio management systems, TokenTax appeared with the very purpose of delivering tax-accounting services in the field of digital currency. One of its strategies for becoming an industry leader has always been large global distribution. The software is available worldwide, and you can expect country-specific tax assistance for the majority of supported countries.
In my opinion, this is one of the most beginner-friendly software solutions, so I believe you can handle the TokenTax dashboard even if this is your first crypto-tax season ever. TokenTax provides support for generating different tax forms depending on your completed crypto activities. While reading their paid-plan offers, I could notice that TokenTax organizes various tax liabilities that arise from such a crypto diversity. They make a clear distinction between CEX (centralized exchanges) and DeFi transactions.
Finally, TokenTax “sells” itself by offering face-to-face consultations with a tax expert. While this isn’t just a marketing trick, you should know the option is available only with the VIP plan, which costs $3,500 a year.
- All-in-one crypto destination with the highest security standards;
- Amicable and adjustable design;
- Feature-rich portfolio management system.
- No real-time customer support;
- Tax reports are tailored for personal use.
Let’s round up the list with Atani. However, I’d like to point out something at the beginning — Atani isn’t a typical system for processing tax reports but rather an exchange aggregator that offers access to 20+ popular crypto exchanges. This makes the platform suitable for crypto trading, portfolio tracking, and tax reporting.
As part of its main domain — trading — Altani delivers an automated tool for calculating taxes on all crypto transactions taking place on the platform. This option is generated as an on-the-spot fiscal report immediately after the transaction is completed.
However, the in-platform product doesn’t come in a ready-to-submit format nor is it considered an official tax document. However, I find this approach pretty convenient as it gives you full control of your upcoming tax obligations.
I read on the Atani website that the platform is planning to integrate CSV and API support very soon. The current offer is completely free of charge and doesn’t limit you to a certain number of transactions.
Disclaimer: Digital currencies and cryptocurrencies are volatile and can involve a lot of risk. Their prices and performance is very unpredictable and past performance is no guarantee of future performance. Consult a financial advisor or obtain your own advice independent of this site before relying and acting on the information provided.
How We Chose the Best Crypto Tax Software
If you ask me, choosing a tax software package is far more challenging than choosing a good crypto exchange. Crypto exchanges have reached a level of a comfort zone, and we’ve already learned to base our decision on a few traits — fees, trading model, security level, and supported crypto. In the decision-making process for the best tax tools, the distinctive traits aren’t that streamlined, and what’s more, they’re unknown even to seasoned traders. So, let me break down the points that make a trustworthy tax solution.
Crypto tax software items usually come with a few subscription plans that differ by price. Believe me, they can be the best guidebooks for getting to know their distinctive features. That said, remember that sometimes a higher account tier doesn’t mean a shortage of certain features but a limit in the number of transactions.
Similar to all other software offers, the best deal depends on the user’s personal needs and requirements. Still, there are a couple of features that are considered the golden standard regardless of your crypto background.
- Accuracy of gain/loss reconciliations
- Professional audit assistance;
- Integration with different crypto sectors (exchanges and wallets) for automated data collection;
- Tax-loss harvest;
- Option for filing taxes on your behalf;
- Portfolio tracking dashboard;
- Free access for your accounting company
Interestingly, not all of the features that can affect your overall experience with the software platform are related to the subject matter — taxes.
Accurate Ready-to-Use Paperwork
This factor is closely associated with the ability of the software to adjust its system to specific-country requirements — each legislation has its paper formats adopted as a standard in front of the respective revenue office.
Given the fact that dealing with tax forms can be overwhelming, the majority of tax programs deliver pre-filled paperwork, available for download. Be careful though. Always double-check the software accuracy level before relying solely on these prefilled forms. Accurate paperwork needs to cover your audit track, gains and losses, and cross-border taxes.
Tax solutions aren’t money transmitters, so there is no risk of a financial scam. But, they’re data transmitters, and their reliability is measured in the form of accurate information. Each calculating mistake can result in a harsh penalty once ATO notices any discrepancies in the submitted reports.
That’s why you need to pay attention to the reputation of the software you’ve picked up. This shouldn’t be difficult today — there are plenty of unbiased user-experience reviews and the institutional backup of a given software can be easily investigated online.
Automated Data Input
As you can notice in my short reviews above, I frequently used the terms “supported” and “integrated” in the context of external exchanges and wallets. In most cases, their use is nearly interchangeable but when I say “integrated”, I mean the ability of the tax software to automatically fill out the transaction data, which is directly imported from the respective exchange or wallet.
Since this content-specific data can be bulky — consisting of the transaction time and date, token price, number of items, etc — manual data input seems exhausting and what’s more, it opens a large room for typing errors. So, never underestimate the number of integrated crypto providers when choosing tax software. Based on the data-input approach, the software can be either an interview-based or form-based electronic filing system.
A good tax software specialized in the field of crypto should “know” that industry trends are changing pretty fast. That’s why I believe that the crypto software must show flexibility in paid plans (upgrades), cryptocurrencies, and the exchanges it supports. In other words, they should allow users to switch among platforms and add up the taxation on different cryptocurrencies without any further effort.
Last but not least, users often criticize tax software packages for charging charge handsomely for their services, especially for the highest VIP tiers. While I never rush for the cheapest deal, I must warn you that the more expensive, the more reliable rule doesn’t always apply here.
My point is that you need to start with the paradigm of what exactly I can get for the money. As I mentioned before, some account tiers differ in the transaction limits but the majority restrict the number of functionalities of the basic package. For example, the first and second tiers may not support NFT transactions.
Enterprise offers are quite popular among corporate clients today as professional accounting desks can customize the deal based on their user base and total volume trade.
How Crypto Tax Software Works
Given the rapid growth of crypto-tax solutions, it’s nearly impossible to discuss their performances in general terms. However, the core procedure for calculating the crypto tax is the same regardless of whether you sell Bitcoin (BTC) against Ethereum (ETH) on Binance or do yield farming for generous interest on SushiSwap.
Crypto tax software programs automate the filling-in process and synchronize your multi-crypto portfolio across various exchanges or external wallets. So, once you select a tax software against your needs, the first thing you should do is integrate the software with the exchanges and wallets you use.
The tax generator will then organize all types of your transactions. For example, it’ll separate buying from selling transactions. Depending on the package, the software can also classify NFTs, your received crypto payments, and margin profit as separate entries.
On top of this, the tax software will detach capital gains from losses so that you know which transactions make a taxable event, depending on the applicable tax regulations in your country. Also, depending on the software automatization level, your official tax reports can be filled out automatically with the direct input of the software data. Some solutions generate ATO forms for various types of taxes.
Frequently Asked Questions
What is the best cryptocurrency tax software?
Tax software programs deal with a delicate subject, so it’s almost impossible to single out the best package for all types of crypto traders. All crypto tax software alternatives listed in this review are regarded as the best in their class in terms of accuracy and reliability. Yet, if you’re aiming at an ease of use, you should go for Koinly. If you’re a professional tax expert, Cryptotaxcalculator and Ledgible can help you a great deal in automating tax reports for your crypto-oriented clients. CoinTracking is the most affordable solution, while Coinpanda offers the best selection of supported exchanges and wallets.
How do I declare crypto taxes in Australia?
For the most part, the ATO considers your crypto as property, and hence, an asset that is subject to Capital Gains Tax (CGT). Some of your crypto activities may also be perceived as additional income and taxed as Income Tax. In this case, you’ll have to report all capital gains and losses in your Income Tax Return and consequently, settle the tax as all other net gains in the given timeframe.
Does the ATO know if you have crypto?
All verification requirements that are imposed by crypto exchanges today have been designed to prevent money laundering and tax evasion. So, yes. The ATO gets all the personal information you share when creating an account on AUSTRAC-regulated crypto exchanges as part of the
Is Koinly or CoinTracker better?
Both software packages are well-recognized portfolio management tools and accurate generators of tax forms adjusted to the Australian market. However, Koinly is a more effective choice for crypto traders who participate in DeFi earning systems and prefer margin trading, forks, and futures as you get support for these transactions without paid upgrades, which isn’t the case with CoinTracker.
How do I keep track of crypto taxes?
If you’ve made a few buy-and-sell transactions over a single financial year, you can keep a record of the profit/loss in a simple Excel sheet. But, if you’re an active trader, you need to consider professional assistance or suitable tax software for home use. It’s not always the size and volume of your crypto transactions that make tax liabilities difficult to track. You need automated assistance to determine tax liabilities arising from the executed transactions.
Is crypto tax software free?
It’s not. All crypto tax software deals offer multi-layer paid plans — from basic to pro or VIP. You may find several offers that guarantee free service, but in such cases, you won’t be able to download the generated tax report without an upgrade. Also, there are very few software packages where the basic plan is free, but the number of supported transactions is very low.