Australia ends crypto CGT discount in 2027

• Australia will remove its 50% capital gains tax discount for most cryptocurrency investments from July 2027.
• The change is expected to increase tax bills for long-term crypto investors.
• The government said the reform aims to align crypto taxation with other financial assets.

Australia will remove the 50% capital gains tax discount for most cryptocurrency investments from 1 July 2027, changing how long-term crypto gains are taxed.

The reform means eligible investors will no longer receive the tax discount that currently applies to crypto assets held for more than 12 months.

"The 50% CGT discount will no longer apply to most crypto assets from 1 July 2027," the Australian Government said.

The changes are expected to apply to most cryptocurrencies, while the government said some digital assets and investment structures may continue to receive different tax treatment.

The government said the reform is intended to simplify the tax system and align the treatment of crypto assets with broader tax policy.

Australia has been reviewing its digital asset regulations as cryptocurrency ownership and investment continue to grow across the country.

The tax change adds to broader reforms covering cryptocurrency regulation, licensing and consumer protections in Australia's digital asset market.