The Australian government will end the 50% capital gains tax discount for cryptocurrency starting July 2027, according to an announcement this week. The change removes a tax break that had applied to crypto assets held for more than 12 months, meaning investors will soon pay the full CGT rate on any gains.
How the discount works now
Currently, individuals who hold an asset for at least a year can claim a 50% discount on the capital gain when they sell. That rule has applied to cryptocurrency since the Australian Tax Office classified it as a capital asset. For a holder who bought bitcoin at $20,000 and sold at $50,000 after 12 months, the taxable gain would be cut from $30,000 to $15,000. After July 2027, that halving will disappear for crypto.
What investors should expect
From July 2027, every crypto sale – regardless of how long you held the coin – will be taxed at the full marginal rate. The change only affects crypto; the 50% discount still applies to other assets like property and shares. The government hasn't said whether it will introduce a transitional rule for crypto bought before the deadline but sold after.
Timeline and next steps
The government set the July 2027 date but hasn't released draft legislation yet. Investors have about a year to review their holdings and decide whether to sell before the discount ends. The Treasury is expected to publish detailed guidance in the coming months. For now, the message is clear: the tax advantage for long-term crypto holders is gone.
