From July 1, 2027, Australian asset owners will pay tax on their full capital gains at their income tax rate, rather than the current 50% discount. Crypto will be particularly affected because almost all of its returns come from capital growth: for Bitcoin bought for A$10,000 and sold ten years later for A$100,000, inflation indexation would reduce the taxable gain by only about A$3,439. The strategies discussed include recording the portfolio’s value before that date, holding crypto in a self-managed superannuation fund, or borrowing against Bitcoin, but each has limitations or risks. The Australian Labor Party, which holds 94 of 150 seats, is unlikely to see the reform reversed despite promises from the opposition.
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