Australia to Abolish 50% CGT Discount on Crypto Assets in July 2027, Investors Need to Plan Ahead

According to Forbes, Australia has passed the Tax Laws Amendment (Tax Reform No. 1) Act 2026, implementing the most significant reform to the capital gains tax system in over 25 years. Starting from July 1, 2027, the current 50% capital gains tax discount for assets held for more than 12 months will be officially abolished, replaced by a cost base inflation indexation mechanism and a minimum 30% capital gains tax rate. Transitional provisions stipulate that gains accrued before July 1, 2027, may still be protected under the old rules, but investors must accurately distinguish gains under the new and old rules and maintain complete records. Cryptocurrency holders are advised to organize transaction history and cost bases as soon as possible, and consult professional tax advisors to evaluate whether to dispose of relevant assets before the deadline to lock in tax advantages.