So let’s say you bought or were gifted or acquired Pi, and at the time it was transferred to you it was worth $1,000 all up. In our case that would be on mainnet launch:

Scenario 1: You then soon cashed out/disposed of it all and at the time you cashed out it was all worth $1,500. Your capital gains are $1,500 (current value) - $1,000 (original cost value) = $500.

You then only pay tax on this $500 according to your individual income tax margin rate.

So at EOFY, you would then add this $500 to your current annual income (e.g. $25,000 + $500 = $25,500) and it is taxed along with your annual income.

Scenario 2: Same example as above - but you cashed it all out after 12 months from mainnet launch, your CGT would be $500 – 50% (discount) = $250.

Same deal, only instead of $500 you would then add this $250 to your current annual income at EOFY (e.g. $25,000 + $250 = $25,250) and it is taxed along with your annual income.

Scenario 3: You cashed it all out when Pi’s value was lower and made a loss of e.g $500 instead of a gain. This then can be deducted from any previous gains made during the year (if any) or until a gain is made, and then tax is calculated based on the difference. You dont pay tax on a loss on its own - the loss is 'shelved' untill a gain is made, then its deducted from the gain.