Australia to Adjust Capital Gains Tax Rules, Potentially Affecting Tax Burden for Long-Term Crypto Asset Investors

According to Cointelegraph, the Australian government plans to replace the existing 50% capital gains tax discount for assets held over 12 months with an inflation-indexed taxation model. If implemented, the new rule could increase tax liabilities on long-term investments such as crypto assets. The Australian Financial Review, citing informed sources, reported that this adjustment will be included in the Albanese government’s 2027 fiscal year budget, scheduled for release on Tuesday. Under current rules, investors enjoy a 50% capital gains tax discount on assets held for more than 12 months; the proposed reform would instead tax the full amount of real (inflation-adjusted) gains. The new rule is expected to take effect at the end of the 2027 fiscal year (June 30, 2027), with a one-year transition period for assets acquired after May 10, 2026.