The Australian government is expected to announce details of proposed changes to Capital gains tax (CGT) incentives, which are likely to directly impact crypto investors, according to local media.
The Australian Financial Review recently reported that the government plans to implement a one-year "grace period" before the CGT changes take effect. Finance Minister Jim Chalmers will announce details of this proposal on the night of the budget announcement.
According to the plan, the government wants to replace the 50% reduction in Capital gains tax for assets held for more than one year with an inflation-adjusted mechanism. This means that a portion of long-term profits could be taxed at a higher rate. The Sydney Morning Herald reports that assets eligible for this tax include cryptocurrencies.
During the proposed transition period, properties purchased after the budget announcement night will still be subject to the current 50% discount until mid-2027.
This proposal is facing backlash from the market. Christopher Joye, Chief Investment Officer of Coolabah Capital, wrote on X that the tax increase could cause money to flow out of “value-generating” investment channels, such as businesses, stocks, commercial real estate, or rental properties, and into owner-occupied housing due to its more favorable tax advantages.
The anticipated tax changes also come as Australia continues to tighten its crypto regulatory framework. Last month, the country passed new legislation requiring “digital asset platforms” and “ Tokenize custody platforms” to obtain a financial services license.
The article "Australia gradually amends laws affecting crypto investors" first appeared on CoinMoi .
