Australia’s proposed CGT changes could discourage long-term crypto holding

Australia’s Labor government has proposed capital gains tax reforms that would impose a minimum 30% tax on gains and eliminate the 50% CGT discount for assets held more than 12 months. The announced changes, part of the FY2027 budget, aim to curb property incentives but would raise tax bills for many crypto investors—particularly low-income holders—and could remove the tax reward for long-term “hodling.” Industry executives warn this may encourage more short-term trading, reshape advisor strategies, and push some investors toward retirement vehicles and self-managed super funds. The measures apply to gains accrued after July 1, 2027, must pass both houses of Parliament, and face political opposition. Market impact: increased tax burden could reduce long-term crypto allocations in retail portfolios, boost trading turnover, and alter institutional and retail demand dynamics in Australia’s crypto market.