Is crypto mining income taxed as income or CGT in Australia?

Whether crypto mining is treated as income or a CGT event depends on whether you are mining as a business or as a hobby.

If you mine as a business, the crypto you receive is assessable as ordinary income at its market value in AUD on the day you receive it. Business expenses (electricity, hardware depreciation, hosting costs) are deductible. When you later sell the mined crypto, you have a further CGT event with a cost base equal to the value included as income on the day of mining.

If you mine as a hobby (small scale, no commercial intent, not carrying on a business), the ATO's position is that there is no income tax when you receive the mined coins. Instead, the cost base of the coins is zero. When you sell, the entire proceeds are a capital gain. If you held the mined coins for over 12 months before selling, the 50% discount applies.

The business vs hobby distinction hinges on scale, regularity, commercial intent, and profit motive. Someone running multiple mining rigs full-time with a business plan is clearly a business. Someone running a single small GPU miner is more likely a hobby. Getting the classification wrong can be costly either way; seeking a private ruling from the ATO for significant mining operations is worth considering.