Australia to propose capital gains tax changes affecting crypto investors: reports
The Block
The Australian government plans to replace the 50% capital gains tax discount with an inflation-indexed model, impacting crypto and other long-term assets.Summary
The Australian government is reportedly set to reform its capital gains tax (CGT) system by replacing the current 50% discount on assets held for over a year with an inflation-indexed model. This change is expected to impact various assets, including cryptocurrencies. Treasurer Jim Chalmers is slated to release details in the upcoming budget, with a one-year grace period and a transition phase until mid-2027 for assets acquired after the budget announcement. The proposal has faced criticism from market analysts like Christopher Joye, who argue it could discourage investment in productive assets by effectively increasing the tax burden on gains.
(Source：The Block)