Australia Scraps 50% Crypto CGT Discount, Introduces New Tax Framework

Australia is set to overhaul its capital gains tax system, which will impact crypto investors. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 eliminates the 50% discount on long-term holdings, replacing it with a more complex framework that includes cost-base indexation and a minimum 30% tax rate on capital gains.

The change takes effect from July 1, 2027, and investors are advised to review their records and model their unrealized gains under both the current and incoming rules. The new system requires more precise records throughout the holding period, making recordkeeping critical for investors who have held assets across a long period.

The transition provisions protect gains that accrued before July 1, 2027, allowing investors to still apply the old discount framework to that portion of their gain. However, this means gains may need to be split across two periods, each taxed under different rules.