Australia Plans Tax Reform Affecting Long-Term Investments

Australia is considering a tax reform that could impact long-term investments, including crypto assets. According to ChainCatcher, the government plans to replace the current 50% capital gains tax discount for assets held over 12 months with an inflation-indexed taxation model. This change, if implemented, may increase the tax burden on long-term investments. The Australian Financial Review, citing sources familiar with the matter, reports that this adjustment will be included in the Albanese government's 2027 fiscal year budget, set to be announced on Tuesday. Under the existing rules, investors benefit from a 50% capital gains tax discount for assets held longer than a year. The proposed plan would instead tax the full amount of actual gains after deducting inflation. The new regulation is expected to take effect at the end of the fiscal year in July 2027, with a one-year transition period for assets acquired after May 10, 2026.