Australia will scrap the 50% capital gains tax discount for long-held crypto assets, with the new rules set to take effect in July 2027.

According to Forbes, Australia is set to implement major changes to its capital gains tax (CGT) regime, impacting long-term investors including those in cryptocurrency. The current 50% CGT discount for assets held for more than 12 months will be scrapped effective July 1, 2027. The new regime will replace the existing discount with two measures: cost-base indexation and a minimum 30% CGT rate. Cost-base indexation allows investors to adjust an asset’s original cost upward to account for inflation, reducing paper gains driven by rising prices, while the new rules set a minimum 30% tax rate on capital gains. Under the transition arrangement, capital gains realized before July 1, 2027 will generally remain eligible for the old regime’s 50% discount. Gains realized after that date will fall under the new tax rules, meaning long-held crypto assets may require separate calculations for gains accrued in the two periods. Australian crypto investors are advised to organize their transaction records, cost bases, and asset valuations as of the 2027 transition date in advance to accurately separate gains under the old and new tax systems. Additionally, some long-term holders may need to evaluate selling their assets before the new rules take effect to take advantage of the current tax benefits.