The Australian government is preparing to eliminate tax incentives for digital asset investors, marking a significant turning point for global cryptocurrency investors. This decision is XEM as following in the footsteps of Germany, which recently attracted attention for tightening its crypto tax policies. If the bill is implemented as planned, from July 2027, the tax incentives that were XEM a "haven" for long-term holder in Australia will be officially removed.
For many years, Australia has been considered by the crypto community as one of the most investor-friendly countries for long-term investors, thanks to its 50% reduction in Capital Gains Tax (CGT) for assets held for more than 12 months, including Bitcoin, Ethereum, and other cryptocurrencies. This policy provides a significant incentive for a "long-term hold" strategy, as after-tax returns are significantly improved compared to short-term trading.
However, under the new proposal, this 50% incentive mechanism will be completely eliminated. Instead, investors will only be allowed to deduct inflation during the asset holding period before calculating taxes. This is a structural change that could significantly impact long-term crypto investment strategies in Australia.
To illustrate, consider a specific example. If an investor buys crypto for 200 million VND and after holding it for a period of time, its value increases to 300 million VND, resulting in a profit of 100 million VND. Under the old law, if held for more than a year, only 50% of the profit was taxed, meaning tax only applied to 50 million VND. But under the new law, assuming inflation during the holding period is 10%, the investor is only allowed to deduct 20 million VND (10% of the original Capital ), and still has to pay tax on the 80 million VND profit. This difference shows that the actual tax payable will increase significantly, especially for investors who hold assets for many years.
