Australia to End 50% Capital Gains Tax Break for Long-Term Crypto Holders From July 2027

Australia will abolish a 50% capital gains tax discount for long-term cryptocurrency holders from July 2027.

Forbes reported on July 16 that Australia passed the Treasury Laws Amendment Bill 2026, setting up the biggest overhaul of its capital gains tax system in 25 years. Under the changes, the 50% CGT discount for assets held longer than 12 months will end on July 1, 2027.

Under current Australian tax law, only half of a capital gain is included in taxable income when cryptocurrency is sold after being held for more than 12 months. For example, if an investor realizes a $20,000 gain on a crypto trade, only $10,000 is treated as taxable income.

The new system will replace that simple discount with cost-base indexing linked to inflation and a minimum 30% tax rate on capital gains. The method adjusts the purchase price for inflation while maintaining a floor on the applicable tax rate.

"The new system introduces two mechanisms in place of the simple 50% discount: cost-base indexing and a minimum 30% tax rate on capital gains," Forbes wrote.

Gains accrued before July 1, 2027, will still be covered under the current system. Long-term investors will therefore need to calculate gains earned before and after the transition date separately.

For cryptocurrency investors, record-keeping will become more important. To preserve the current tax benefit, they will need to show the purchase date, acquisition cost and number of holdings, as well as the fair market value of their assets as of July 1, 2027.

That may be more difficult for investors holding assets in personal wallets rather than on centralized exchanges, or in thinly traded tokens, because pricing and documentation as of the transition date could be harder to establish.

Forbes added that investors should organize transaction records before the deadline and compare their tax burden under the current and new systems. For some long-term holders, selling before July 2027 may be more advantageous, though the outcome will vary depending on each asset's holding period and the effect of inflation adjustments.