TaxBot is an AI-powered tax and expense app for everyone — from individuals wanting a bigger tax refund to sole traders, freelancers and small businesses in Australia and the United States. You scan a receipt or upload a bank statement, and TaxBot's AI categorises each transaction, finds the deductions you're entitled to, tracks GST/BAS, and estimates your tax in real time.

How does TaxBot help me save on tax?

TaxBot reads your receipts and bank statements and uses AI to identify every work-related expense you can legally claim — matched to your occupation — including items people commonly miss like subscriptions, tools, phone, vehicle and depreciation. Claiming more legitimate deductions lowers your taxable income, so you keep more of what you earn.

Does TaxBot handle GST and BAS in Australia?

Yes. TaxBot tracks GST collected and paid, breaks it down by BAS quarter and full financial year (1 July – 30 June), and gives you a clear net-GST figure to help you prepare your Business Activity Statement.

TaxBot is for anyone who wants to pay less tax and keep better records — everyday individuals and employees claiming work-related deductions, as well as sole traders, freelancers, contractors, gig and rideshare drivers, tradies and small business owners. If you have expenses you can claim, TaxBot helps you find and track them without an accountant doing everything manually.

Yes — you can start free with no credit card. The free Starter plan includes essential tools and a monthly allowance of AI actions. Paid plans (from $14.99/month AUD) add unlimited receipts, more AI, and extra modules like invoicing, mileage and depreciation.

Can TaxBot turn my bank statement into deductions?

Yes. Upload a PDF or image of your bank statement and TaxBot's AI extracts every transaction, detects the financial year automatically, flags likely business deductions based on your occupation, and lets you save them to your records in one step.

Cryptocurrency Tax in Australia: The Complete Guide

Navigate the complex world of crypto taxation and avoid costly ATO penalties

The ATO sent warning letters to over 600,000 Australian cryptocurrency investors last year. Using data from exchanges, blockchain analytics, and international information sharing, the tax office has unprecedented visibility into your crypto holdings. Yet most investors are still getting their tax obligations wrong, risking penalties that can reach 75 percent of the tax owed plus interest.

The Problem: Crypto Tax Confusion Is Costing Australians Thousands

When Michael sold his Bitcoin holdings for $85,000 last year, he thought it was simple: he had bought for $40,000 and sold for $85,000, so he owed tax on $45,000 profit. What he did not realise was that he had made dozens of crypto-to-crypto trades along the way, and each one was a separate taxable event.

After the ATO contacted him, Michael discovered his actual tax liability was closer to $28,000, not the $12,000 he had calculated. The difference came from incorrectly treated trades, missed disposal events, and a fundamental misunderstanding of how CGT applies to cryptocurrency.

Michael is not alone. Common crypto tax mistakes include:

Treating crypto-to-crypto swaps as non-taxable events (they are taxable)
Ignoring staking rewards and airdrops as income
Using incorrect cost base calculations
Failing to account for exchange fees in cost base
Missing the 12-month CGT discount requirements

The Solution: A Framework for Crypto Tax Compliance

Cryptocurrency is treated as property for Australian tax purposes. This means capital gains tax applies when you dispose of crypto assets. A disposal includes selling for AUD, trading for another cryptocurrency, using crypto to buy goods or services, and gifting crypto to someone else.

Understanding Taxable Events

Every time you dispose of a crypto asset, you need to calculate whether you made a capital gain or loss. The formula is straightforward:

Capital Gain = Disposal Value - Cost Base

Your cost base includes the purchase price, exchange fees, gas fees, and any other costs directly related to acquiring the asset. For crypto held longer than 12 months, you may be eligible for the 50 percent CGT discount.

Crypto-to-Crypto Trades: The Hidden Tax Trap

When Sarah traded 1 Bitcoin (worth $60,000) for 30 Ethereum, she thought no tax applied because she had not converted to Australian dollars. This is one of the most common and costly mistakes.

In reality, Sarah disposed of Bitcoin at $60,000 market value. If her cost base for that Bitcoin was $35,000, she made a $25,000 capital gain at the moment of the trade. The 30 Ethereum she received has a cost base of $60,000 (the market value at acquisition).

Step-by-Step: Getting Your Crypto Tax Right

Step 1: Gather All Transaction Records

Download complete transaction histories from every exchange you have used: Coinbase, Binance, CoinSpot, Swyftx, Independent Reserve, and any others. Export wallet transaction records. Include DeFi protocol interactions, staking rewards, and airdrops.

Step 2: Determine Your Cost Base Method

The ATO allows several methods for calculating cost base when you have acquired the same crypto at different times:

FIFO (First In, First Out): The first crypto you bought is treated as the first you sold
LIFO (Last In, First Out): The most recent purchase is sold first
Specific Identification: You identify exactly which parcels you are disposing of

Once you choose a method, you must apply it consistently. FIFO often works best for maximising the 12-month CGT discount eligibility.

Step 3: Calculate Each Disposal

For each taxable event, calculate your capital gain or loss. Consider this example:

James bought 0.5 Bitcoin in March 2023 for $15,000, then another 0.5 Bitcoin in September 2023 for $18,000. In December 2024, he sold 0.5 Bitcoin for $40,000.

Using FIFO: He disposed of the March 2023 purchase (held over 12 months). Capital gain equals $40,000 minus $15,000, which is $25,000. With the 50 percent CGT discount, his taxable gain is $12,500.

If he had not held for 12 months, the full $25,000 would be taxable, potentially costing an additional $4,625 in tax at the 37 percent marginal rate.

Step 4: Account for Staking and Airdrops

Staking rewards and airdrops are treated as ordinary income, not capital gains. This means they are taxed at your marginal rate when you receive them, and the market value at receipt becomes your cost base for future CGT calculations.

Emma earned 2 ETH from staking over the year, valued at $6,000 when received. This $6,000 is added to her assessable income. If she later sells that ETH for $8,000, she has a $2,000 capital gain.

How TaxBot Simplifies Crypto Tax

TaxBot connects directly to major Australian and international exchanges, automatically importing your complete transaction history. Our crypto tax engine handles the complexity:

Automatic cost base tracking: Every acquisition and disposal is recorded with fees included
Multi-method calculations: Compare your tax position under FIFO, LIFO, and specific identification
CGT discount optimisation: Identify which holdings qualify for the 50 percent discount
Staking income classification: Automatically categorise staking rewards as ordinary income
ATO-ready reports: Generate compliant capital gains reports for your tax return
Real-time portfolio tracking: See your unrealised gains and future tax liability

TaxBot users save an average of 6 hours on crypto tax calculations and identify an additional $1,800 in legitimate deductions and CGT discount opportunities.

Real Numbers: The Cost of Getting It Wrong

The ATO can apply penalties of up to 75 percent of the tax shortfall for intentional disregard of tax obligations. Even for careless errors, penalties of 25 percent are common. Add interest charges at around 7 percent per annum, and the costs escalate quickly.

Consider a $50,000 crypto gain incorrectly reported:

Tax shortfall at 37 percent marginal rate: $18,500
Careless error penalty (25 percent): $4,625
Interest (2 years at 7 percent): $2,590
Total additional liability: $25,715

Proper reporting from the start would have cost only the $18,500 in tax. The $7,215 in penalties and interest was entirely avoidable.

Take Control of Your Crypto Tax Today

The ATO data matching capabilities mean crypto tax avoidance is no longer possible. The smart approach is accurate reporting from day one. Download TaxBot and connect your exchanges today. See your complete crypto tax position in minutes, not hours.