Australia scraps the 50% tax discount, crypto included
Australia has passed the biggest overhaul of its capital gains tax in 25 years. From 1 July 2027 the 50% discount for assets held longer than a year disappears — for shares, property and crypto alike. In its place come inflation indexation and a minimum 30% rate.
With the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, the well-known 50% discount for investors who hold an asset for more than a year will disappear from 1 July 2027. It is Australia's largest reform of its capital gains tax in over 25 years — and crypto sits right in the middle of it.
What changes
Today, if you hold an asset for at least twelve months, only half of your gain is taxed. That discount is being scrapped. In its place comes a two-part system: indexation of the purchase price (your gain is adjusted for inflation) and a minimum 30% rate on the capital gain. Importantly, the measure is not crypto-specific — it hits shares, property and crypto in the same way. For the sector, that is a sign of normalisation rather than of being singled out.
Not retroactive
Under the new law, gains accrued before 1 July 2027 generally remain under the old rules. That makes one thing crucial: an accurate record of the value of your holdings on the transition date. Anyone whose purchase dates and valuations are not in order may struggle to prove which part of a gain falls under which regime.
Why this matters beyond Australia
The law sparked online confusion — some posts suggested the discount had already been scrapped, or that crypto was being singled out. Neither is true: this is a broad reform that only takes effect in 2027. Even so, the direction is telling. Governments worldwide are looking for more tax revenue from wealth, and long-term investors — the classic HODLers — are a logical target. What happens in Australia is often a preview of what comes elsewhere.
What this means for you
If you do not live in Australia, nothing changes on your tax return right now. But the lesson is universal: keep your purchase dates, cost bases and transactions neatly documented. Crypto tax rules shift fast, and good record-keeping is the cheapest thing you can do to avoid surprises later.
This article is informational and does not constitute tax advice. Consult a tax adviser for your own situation.
Sources: Treasury Laws Amendment (Tax Reform No. 1) Act 2026. Last checked: 20 July 2026.