ATO data matching and your MetaMask wallet
The ATO has one of the most active crypto data matching programs in the world. It collects data from Australian exchanges, payment processors, and blockchain analytics firms. The ATO uses this to identify taxpayers with crypto activity who have not reported it correctly, including those using self-custody wallets.
MetaMask does not report to the ATO, but the ATO can identify wallet addresses through on-chain analysis and by cross-referencing exchange withdrawal data. If you withdrew ETH from Coinbase to your MetaMask address, the ATO may be able to trace subsequent on-chain activity from that address. Self-reporting from your full wallet history is the correct approach.
FIFO and the 50% CGT discount
The calculator uses FIFO as a disclosed software assumption across your MetaMask history. Under FIFO, when you dispose of a token, the oldest units are treated as sold first. This is a software assumption, not a universal ATO rule. The preview tracks holding periods, but parcel support, capital losses, entity and residency must be reviewed before applying a discount.
Subject to entity and residency review, a 50% CGT discount may apply to net capital gains on assets held for at least 12 months before disposal. For a MetaMask token swap, the holding period runs from the date you acquired the tokens being disposed of. DYOR.tax tracks acquisition dates for all wallet tokens including those received as DeFi rewards, airdrops, and from exchange imports.
ATO guidance on DeFi and on-chain activity
The ATO has issued guidance covering crypto-to-crypto swaps, wrapping and unwrapping tokens, and DeFi returns. Key positions relevant to MetaMask users:
- Token swaps: The ATO generally treats token swaps as CGT events. Disposing of one token and receiving another triggers a CGT calculation.
- Wrapping: Converting ETH to WETH, or DAI to cDAI, may be treated as a CGT event by the ATO - the guidance treats wrapping as a disposal and reacquisition in most circumstances.
- DeFi returns: Income from DeFi lending, liquidity provision, and similar activities is generally treated as assessable income, though the characterization depends on the specific facts.
- Staking rewards: Generally treated as assessable income at fair market value in AUD when received.
Staking and DeFi income for Australian taxpayers
Staking rewards and DeFi income received into your MetaMask wallet are generally treated as assessable income at fair market value in AUD on the date received. The ATO has confirmed this position for staking and similar activities.
When you later dispose of tokens that were originally received as income, any gain or loss is a separate CGT event. If those tokens were held for more than 12 months from the date received before disposal, the 50% CGT discount may apply to the gain on that disposal. The cost base for those tokens is the AUD fair market value on the day they were received as income.
Related calculators and guides
All countries: MetaMask Tax Calculator
Australia country page: Australia Crypto Tax Calculator
Other MetaMask countries:
MetaMask USA ·
MetaMask UK ·
MetaMask NZ
DeFi guides: Uniswap Tax Calculator · Aave Tax Calculator · Crypto Staking Taxes · Airdrop Taxes