Australia proposes to replace cryptocurrency asset capital gains tax discount with inflation indexation model

Techub News, according to the Australian Financial Review, the Albanese government plans to abolish the current 50% capital gains tax discount in July 2027 and adopt an inflation-indexed model to tax the real gains from investments such as cryptocurrency assets. Long-term investors may face higher tax burdens. Under the current system, holding an asset for more than 12 months qualifies for a 50% reduction in taxable gains. Under the new rules, investors will be required to pay tax on the full real gain adjusted for inflation. Assets purchased before May 10, 2025 will be subject to transitional arrangements on a proportional basis, while assets purchased after that date will fully apply the new rules after a one-year transition period.