Australia to abolish 50% capital gains discount for crypto and other assets held over 12 months
A 2026 tax reform law will remove the long-standing capital gains discount from July 1, 2027, while adding inflation indexation, a 30% minimum tax and transitional treatment for earlier gains.
Australia will significantly revise its capital gains tax regime for cryptocurrencies and other assets by abolishing the 50% capital gains discount for holdings kept longer than 12 months. The change, enacted under a 2026 tax reform law, is due to take effect on July 1, 2027 and will replace the current concession with a system that indexes cost bases to inflation and applies a minimum 30% tax. The overhaul affects crypto assets, stocks and real estate sales, while gains accrued before July 1, 2027 will retain current treatment under transitional rules.
- capital gains tax: A tax on the profit made when an asset is sold for more than its purchase price.
- capital gains discount: A tax concession that reduces the portion of an investment gain subject to tax when an asset is held for a qualifying period.
- cost bases: The original value of an asset used to calculate taxable profit when it is sold, sometimes adjusted for factors such as inflation.