Australia to End 50% Capital Gains Tax Discount for Crypto and Other Assets in 2027

What the new law changes

The shift was passed through the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. Under the current framework, investors who hold qualifying assets for at least 12 months can cut their taxable capital gain in half before it is added to taxable income.

That long-standing treatment has applied for more than 20 years. In practice, a taxpayer who made a A$20,000 gain on a cryptocurrency held for more than a year would currently include only A$10,000 in taxable income. That calculation will no longer apply to gains realized on or after July 1, 2027.

How gains will be handled after July 2027

For transactions completed from that date onward, the existing discount will be replaced by a different structure. The new system has two parts. First, it uses cost-base indexation, which adjusts an asset’s original purchase price to reflect inflation before the gain is calculated. Second, it applies a minimum 30% capital gains tax rate to gains covered by the new rules.

The article does not say how the minimum rate will interact with other parts of the tax system, but it makes clear that the 50% discount itself will no longer be available for gains realized after the deadline.

Transition treatment for older gains

The legislation draws a line between gains earned before and after July 1, 2027. Gains accrued before that date will continue to qualify under the current rules, preserving the existing treatment for that portion.

That means the transition is not presented as a blanket retroactive change. Instead, the source article says future calculations will need to separate gains depending on when they were earned, with the old framework remaining relevant for pre-deadline gains and the new framework applying after the cutoff.

Recordkeeping becomes more important

The reform is also expected to increase the recordkeeping burden for investors. According to the source article, taxpayers will need accurate details on acquisition dates, original purchase prices and asset values during the transition period.

Because the new framework distinguishes between gains realized before and after July 1, 2027, complete transaction histories and supporting valuation records will become important for calculating future tax obligations. This is particularly relevant for assets such as crypto, where investors may have multiple purchases, transfers or disposals over time.

The change marks a significant rewrite of Australia’s capital gains tax treatment for long-term assets. While the approved law sets out the broad structure of the post-2027 regime, the immediate takeaway from the source report is that the familiar 50% discount is ending for crypto, shares and real estate, and that investors will need clear records to navigate the transition between the old and new rules.