Australia considers ending 50% crypto CGT discount

Australia may replace its 50% CGT discount for long-term crypto with an inflation-indexed model from July 2027, raising taxes for investors. A transition period will apply to new assets.

Australia is considering significant changes to its capital gains tax (CGT) rules, which could impact long-term investments such as cryptocurrencies. The government plans to replace the current 50% CGT discount for assets held over 12 months with a new inflation-indexed taxation model. Under this proposal, investors would be taxed on real gains after adjusting for inflation, rather than receiving a flat 50% discount. The reform is expected to be included in the 2027 fiscal year budget and take effect from July 2027, potentially increasing the tax burden for long-term investors. A one-year transition period will apply to assets acquired after the budget announcement, allowing them to retain the current discount until mid-2027. The proposal has faced criticism from market participants, who argue it could discourage investment in productive assets. However, the 50% CGT discount remains in place for now, as no official announcement has been made by authorities.