The Australian Taxation Office (ATO) sets out how crypto asset losses are treated for Capital Gains Tax (CGT). According to the ATO’s guidance (last updated 23 June 2025), you can claim a capital loss in certain situations if you can provide evidence of ownership and the loss.
⚠️ This article explains how to record these events in Navexa. It is general information only, based directly on ATO guidance. Please check the ATO’s website and confirm the correct treatment with your accountant or tax adviser.
1. Lost Private Key
If you lose access to your crypto because the private key is lost, the ATO requires you to hold evidence such as:
Date you acquired and lost the key
Wallet address and proof it was under your control
Cost to acquire the assets
Value of the assets at the time of loss
Supporting transactions (for example, exchange history linked to your identity)
Recording in Navexa:
Enter a Sell trade at $0 for the amount of crypto you’ve lost.
Add a note (for example, “Lost private key — see ATO guidance”).
This ensures Navexa reflects the capital loss in your reports, while your tax return relies on the evidence you provide to the ATO.
2. Theft or Irrecoverable Loss
If your crypto asset has been stolen or you have permanently lost access (for example, corrupted hardware with no recovery possible), you may be able to claim a capital loss if you can prove ownership and the loss.
Recording in Navexa:
Enter a Sell trade at $0 for the lost amount.
Add a note with context (for example, “Stolen crypto — police report filed”).
Again, Navexa records the disposal, but you must provide the required evidence if claiming the loss in your tax return.
3. Exchange or Platform Administration
If a crypto exchange or platform goes into administration (i.e. Mt. Gox), the ATO states:
No capital loss arises until the administration is finalised.
At that point, the market value at the date of finalisation is treated as the deemed disposal amount.
Since you never actually receive that value, the difference between the market value and your original cost base is a capital loss.
Recording in Navexa:
At present, Navexa doesn’t have a dedicated option for this scenario. Two approaches are possible:
Inside Navexa: Record a Sell at $0 for the unrecoverable coins, adding a note (for example, “Exchange administration loss — finalised July 2024”).
For your tax return: Work with your accountant to adjust using the ATO’s deemed market value method. This ensures your return reflects the correct capital loss even if Navexa shows $0 proceeds.
Key Notes
Navexa records the event in your portfolio.
The ATO decides whether a capital loss can be claimed.
Each scenario has different evidence requirements — see the ATO’s crypto loss guidance.
Always confirm treatment with your accountant or tax adviser before lodging your return.
⚠️ Important: This is general information only, not personal financial advice. It is based on ATO guidance (updated 23 June 2025).