In short
“There are no inheritance or estate taxes in Australia,” says the ATO, and death itself triggers no capital gains tax. The catch comes later: the heir takes over the deceased’s cost base, so the tax on a sale is calculated from what the person originally paid. That makes the purchase records as important as the keys. Probate is handled by each state’s Supreme Court.
No tax at death, tax at sale
The ATO’s position in full: “There are no inheritance or estate taxes in Australia”, though capital gains tax “may apply if you dispose of an asset inherited from a deceased estate” (ATO). Crypto is a CGT asset like shares (ATO), so:
- Death is not a CGT event. The executor disregards any gain on assets that pass to a beneficiary (ATO).
- The heir inherits the cost base. For any asset the deceased acquired on or after 20 September 1985, which is all crypto, the heir’s cost base is “generally what the deceased’s cost base for the asset was on the day they died” (ATO). Bitcoin bought for $5,000 and inherited at $80,000 is still, for tax, bitcoin that cost $5,000.
- The holding period carries over too. The heir is treated as having owned the asset since the deceased acquired it, which matters for the 50% discount on assets held for at least 12 months (ATO).
The practical consequence: an Australian executor has to find the purchase records, not just the coins. Without them the cost base is hard to prove, and the heir may end up taxed on the whole sale price. Exchange histories, bank statements and old tax returns are the places to look; see Finding crypto.
Probate
Each state’s or territory’s Supreme Court grants probate (with a will) or letters of administration (without). In New South Wales the application should be made within six months of the death (NSW Government). Exchanges ask for the grant before releasing anything.
A will that has been through probate is public. Queensland Courts: “Once a will is filed in the court, it becomes a public document. Any person can view the will on the file on payment of a fee” (Queensland Courts). Other states are similar. No seed phrases in the will; see What to put in your will.
The estate’s tax returns
The executor lodges a “date of death” return for the person’s income up to death, and the estate may need its own trust return for income after it, including any gain when the estate (rather than an heir) sells crypto. For the first three income years the estate is taxed at individual rates with the full tax-free threshold; from the fourth year the threshold all but disappears (ATO). An estate that sits on crypto for years can end up paying more tax than the heirs would have.
Executors’ access to online accounts
Australia has no law giving executors a right of access to a deceased person’s digital accounts. The NSW Law Reform Commission recommended one in 2019 (Report 147); nothing has been enacted since. Exchanges still release funds to an executor with the grant; email and cloud providers follow their own policies. For self-held wallets, only the keys help.
Self-managed super funds
An SMSF may hold crypto, but the fund must keep it “separately from the personal or business investments of trustees and members”, in its own wallet, and value it at market (ATO). On death the crypto is a fund asset: who receives it follows the trust deed and any death benefit nomination, not the member’s will (ATO). If your crypto is in an SMSF, the nomination is the document to get right, and the surviving trustee needs the keys.
Lost keys
To claim a capital loss for crypto that can’t be accessed, the ATO wants proof: the wallet address, when the key was lost, what the coins cost and evidence the wallet belonged to the person (ATO). More in When the keys are really lost.
Crypto reporting is coming
Australia is adopting the international crypto reporting framework (CARF): the first exchange of information is expected in 2028, and the ATO notes the measure “is not yet law” (ATO); reporting is planned to start with the 2027 year (KPMG). Undeclared holdings will become visible to the ATO within a few years.
Checklist for Australian executors
- List every account and wallet, and collect the deceased’s purchase records and dates.
- Note the value at the date of death for dividing the estate, and the cost base for the heirs’ tax.
- Apply for probate in the state’s or territory’s Supreme Court; send claims to exchanges with the grant.
- Lodge the date-of-death return and, if needed, the estate’s trust return.
- Give each heir a note of the cost base and acquisition date they’ve inherited.
Not tax or legal advice. Rules as of October 2026; check the linked ATO and state pages.