coinedition.com
Australia’s capital gains tax framework is set for a major transition after lawmakers approved new legislation that will end the long-standing 50% capital gains tax (CGT) discount from July 1, 2027.
The reform, introduced through the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, changes how gains from long-term investments, including cryptocurrencies, shares, and real estate, will be calculated.
While gains earned before the deadline will continue to qualify under the current rules, transactions completed from July 1, 2027, onward will fall under a new tax structure that replaces the existing discount with cost-base indexation and a minimum 30% capital gains tax rate.
New Capital Gains Tax Framework Begins in July 2027
For more than two decades, Australian investors who held qualifying assets for at least 12 months could reduce their taxable capital gain by 50%. Under the current framework, only half of the gain is included in taxable income after meeting the holding-period requirement.
For example, a taxpayer with a capital gain of $20,000 from a cryptocurrency held for more than one year would include only $10,000 in taxable income. That calculation will no longer apply to gains realized on or after July 1, 2027.
Instead, the new system introduces two separate mechanisms. The first is cost-base indexation, which adjusts an asset’s original purchase price to account for inflation before calculating any capital gain. The second sets a minimum capital gains tax rate of 30% for gains covered by the new rules.
Recordkeeping Requirements Will Change
The revised framework also changes how investors will need to maintain their records. Under the new approach, taxpayers will need accurate information on acquisition dates, original purchase prices, and the value of their assets during the transition period.
The legislation distinguishes between gains realized before and after July 1, 2027. As a result, maintaining complete transaction histories and supporting valuation records will become an important part of calculating future tax obligations under the revised system.
Related: Australian Crypto Investors Face Possible Tax Hike Under CGT Reform Plans