No, crypto gains will not be taxed twice under Australia’s 2027 capital gains tax (CGT) changes. From 1 July 2027, the 50% CGT discount will be replaced for individuals, trusts and partnerships. However, each part of a gain will still be taxed only once. For crypto held on that date, the gain will be split based on its value on 1 July 2027. The growth before that date will retain the 50% discount, while subsequent growth will follow the new rules.
These changes affect many Australian investors, given that around 1.1 million individuals reported a net capital gain in 2022-23 , most using the 50% discount. However, the new rules will not affect 2025-26 or 2026-27 tax returns. This guide explains how the split works, how the 30% minimum tax applies and what crypto investors need to do before 1 July 2027.
Key Takeaways
- The 2027 CGT changes are now law, but they apply only to crypto gains that accrue from 1 July 2027.
- Growth before 1 July 2027 keeps the 50% discount, even if you sell years later.
- Growth after that date uses cost base indexation and a 30% minimum tax.
- You don’t trigger any tax on 1 July 2027 itself; tax applies only when you dispose of the crypto.
What Are The 2027 Capital Gains Tax (CGT) Changes?
The 2027 changes replace the 50% capital gains tax (CGT) discount with two new rules. The Australian Taxation Office (ATO) confirms the measures are now law. They apply to individuals, trusts and partnerships holding crypto and other CGT assets. Each rule targets a different part of how gains are taxed.
Cost Base Indexation Replaces The 50% Discount
Instead of halving a gain, the new rules increase your cost base in line with inflation. Treasury’s tax explainer says indexation will use the Consumer Price Index (CPI). It works much like the system that applied between 1985 and 1999. Assets must still be held for at least 12 months to qualify.
A 30% Minimum Tax On Capital Gains
A new minimum tax ensures real capital gains are taxed at no less than 30%. It applies only to gains accruing from 1 July 2027, and only when they are realised. Investors already paying 30% or more on their gains are not affected. The top-up mainly reaches people on lower marginal rates.
When Do The Changes Start?
The new rules begin with the 2027-28 income year, starting 1 July 2027. The ATO has confirmed the Budget changes do not apply to Tax Time 2026. Crypto sold on or before 30 June 2027 is taxed entirely under the current rules. The ATO will release guidance and tools to support the new calculations.
Where Does The "Taxed Twice" Myth Come From?
The myth that crypto gains will be taxed twice comes from confusion about how the old and new CGT rules work together. Since the changes involve two dates and two calculations, investors may mistake them for two separate tax bills. However, the rules divide a single gain into two parts, and each part is taxed only once. Three aspects of the changes often cause this confusion.
The 1 July 2027 Valuation Point
Under the new rules, crypto held on 1 July 2027 must be valued on that date. However, some investors assume that this valuation triggers a tax bill, as though they had sold their crypto. This is not the case. The Budget explainer confirms that tax is payable only when a gain is realised. Instead, the 1 July 2027 value simply marks the point where the old rules end and the new ones begin.
Two Sets Of Rules, Not Two Tax Bills
When you eventually sell your crypto, the gain is calculated in two parts, based on the applicable rules before and after 1 July 2027. Both parts are then added together and taxed once in the financial year of the sale. This ensures that no part of the gain is counted twice. The split only changes how each part of the gain is reduced for tax purposes, not how many times it is taxed.
Why Do The Old Indexation Rules Not Apply To Crypto?
The confusion also arises from the older CGT indexation rules. The ATO’s current guidance on indexing the cost base explains that this method applies only to costs incurred by 21 September 1999, with indexation limited to 30 September 1999. Since crypto did not exist at the time, this method has never applied to crypto assets. The new indexation system is a separate regime that begins on 1 July 2027.
How Are Crypto Gains Split Under The New Rules?
Under Australia’s new CGT rules, crypto gains are divided based on when the growth occurred, not when you sell. The transitional rules cover three situations, depending on when you bought and sold your crypto. For existing investors, the main consideration is crypto held across 1 July 2027, as its gains may fall under both the old and new rules.
The Portion Before 1 July 2027
If you hold crypto on 1 July 2027, the first part of your gain covers growth up to that date. You calculate it by subtracting the original cost base from the crypto’s value on 1 July 2027. If eligible, this portion retains the 50% CGT discount, even if you sell the crypto several years later. Therefore, you do not need to sell before 1 July 2027 to preserve the discount on this growth.
The Portion After 1 July 2027
The second part covers any growth from 1 July 2027 until you sell your crypto. For this calculation, the crypto’s value on 1 July 2027 becomes the starting cost base. You can then index this value for inflation, and the 30% minimum tax may apply. However, these new rules apply only to growth after 1 July 2027. Any growth before that date remains subject to the old rules.
Crypto Bought And Sold Before 1 July 2027
If you buy and sell crypto before 1 July 2027, the reforms will not affect your gains. Instead, you continue to calculate them under the current rules, including the 50% CGT discount for eligible holdings. This applies to all tax returns up to and including 2026-27. Our complete guide to crypto tax in Australia explains how these rules work.
Crypto Bought After 1 July 2027
Crypto bought on or after 1 July 2027 falls entirely under the new rules because no growth occurred before the changes took effect. As a result, there is no need to split the gain. Instead, the cost base is indexed for inflation from the purchase date, and the 30% minimum tax may apply when you sell. However, you must still meet the 12-month holding requirement to qualify for indexation.
How Will Your Crypto's 1 July 2027 Value Be Set?
Your crypto’s 1 July 2027 value is chosen in the return for the year you sell. Until then, no figure needs to be lodged with the ATO. Treasury’s explainer offers two ways to set that value. For crypto, one of them is far simpler than for most other assets.
Using A Market Valuation
The first option is a valuation of the asset as at 1 July 2027. For assets like shares, the explainer says quoted prices can be used. Most major crypto assets also trade with publicly quoted prices every day. That should make a market valuation far easier than for property or private businesses.
Using The Apportionment Formula
The second option is a formula that estimates the value from growth across the holding period. The ATO will provide tools to work it out. A formula assumes steady growth, which rarely matches crypto’s sharp price swings. Detailed rules for this method are still being finalised, so check current ATO guidance.
Recording Crypto Prices On 1 July 2027
Crypto markets trade around the clock, so the exact price depends on the time recorded. Screenshot your holdings and note each coin’s Australian dollar price around 1 July 2027. Save exchange balance statements for that date too. Evidence gathered at the time will be far stronger than figures rebuilt years later.
How Do The 2027 Changes Affect Different Crypto Holders?
The 2027 changes do not treat every crypto holder the same way. Individuals face both indexation and the 30% minimum tax on post-July 2027 growth. Trusts and partnerships follow the same split, but pass gains on in their own ways. Companies and super funds sit in a different position again.
Individuals
Individuals lose the 50% discount on growth accruing from 1 July 2027. Indexation replaces it, and the 30% minimum tax may then apply when crypto is sold. The top-up mostly affects investors whose marginal rate is under 30% in the year they sell. Tax offsets may reduce it, according to Treasury’s explainer.
People receiving means-tested income support, such as the Age Pension or JobSeeker, are exempt. The exemption applies if any payment is received in the financial year the gain is realised. For retirees on the Age Pension, this can remove the top-up entirely. Timing a sale within an eligible year therefore matters.
Trusts
Trusts lose the 50% discount for gains accruing from 1 July 2027, just like individuals. Indexation applies instead where the holding and residency conditions are met. Separately, the Budget announced a 30% minimum tax on discretionary trusts from 1 July 2028. That is a different measure, and some exceptions will apply.
Partnerships
In a partnership, each partner makes their own share of any capital gain. The Treasury Laws Amendment Act 2026 confirms indexation extends to an individual partner’s share of a gain. Each partner then applies the new rules in their own return. Crypto held by a partnership therefore follows the same split as crypto held directly.
Companies And Super Funds
Companies have never had access to the 50% discount on their capital gains. The ATO lists only individuals, trusts and partnerships as losing that discount. The discount replacement therefore has nothing to change for a company’s crypto. Directors should still confirm any wider effects on their company as ATO guidance is released.
Super funds are not mentioned in the ATO’s reform summary at all. Complying funds, including self-managed super funds (SMSFs), currently receive a separate one-third discount. Some commentary says they sit outside the reforms, but the ATO has not yet confirmed this. Trustees should watch for official guidance before relying on either view.
How Can KoinX Help You Prepare For The 2027 CGT Changes?
Preparing for the change means knowing what you hold, when you bought it and its value. Those three facts decide how every future crypto gain is split. KoinX brings them together across exchanges and wallets, applying ATO rules throughout. The reports and features below matter most before and after 1 July 2027.
Beginning Of Year Balance Report
The Beginning of Year Balance Report records what you hold as each financial year begins. The 2027-28 financial year starts on 1 July 2027, the exact date the new rules begin. Every holding is shown with its fair market value on that day. That makes the report a natural record of your valuation point.
End Of Year Balance Report
The End of Year Balance Report shows your closing holdings alongside each one’s original cost. It captures your position at 30 June 2027 when run for 2026-27. Those costs start the pre-July 2027 part of each gain. Paired with your 1 July values, it shows both halves of the split in one place.
Accurate Preview
Accurate Preview lets you check your capital gains position, one transaction at a time. Before 1 July 2027, it helps you review gains already realised this year. That view helps you decide whether any planned sale should happen before or after the change. Reviewing it early keeps decisions calm rather than rushed.
Portfolio Insights
Portfolio Insights gives a clear view of all your transactions and holdings across platforms. Seeing your whole portfolio in one place helps you plan disposals around 1 July 2027. It also makes holdings approaching their 12-month mark easier to track. Better visibility now means fewer surprises when the new rules apply.
The 1 July 2027 split rewards investors who prepare early. Connect your exchanges and wallets now, so every acquisition date is on record. Then download your beginning of year balances once the 2027-28 year starts. Get ready for the 2027 CGT changes with KoinX before your valuation date arrives.
Conclusion
The real risk of the 2027 changes is not double taxation but poor records. Every future sale of existing crypto will need its 1 July 2027 value. Capturing that value at the time costs only minutes. Rebuilding it years later, after exchanges change or close, can cost far more time and money.
Set a reminder for 1 July 2027, and record every holding’s price that day. Keep acquisition dates handy, since they decide which rules apply to each coin. Then let future decisions follow your plans, not the calendar. Start preparing your crypto records on KoinX well before the new rules begin.
Frequently Asked Questions
Are Foreign Residents Affected By The Changes?
Yes. The Treasury Laws Amendment Act 2026 states that indexation does not extend to foreign or temporary residents. They also lost access to the 50% discount for most periods after 8 May 2012. Anyone changing residency around 1 July 2027 should get advice before selling. Residency status on each date can change the result significantly.
Can Crypto Losses Still Reduce My Gains After 1 July 2027?
Yes, but the order of applying them becomes fixed. The Tax Reform Act requires certain kinds of capital gains to be reduced before others. That removes some of the flexibility investors have today when choosing which gains to offset. Our guide to crypto tax-loss harvesting explains how losses work under current rules.
Will The ATO Provide Tools For These Calculations?
Yes. Treasury’s explainer says the ATO will provide guidance and tools for indexation. Tools will also estimate the 1 July 2027 value under the apportionment formula. The ATO’s indexation page notes these resources will be available at a later date. Until then, current tools only reflect today’s rules.
Does Holding Crypto In An SMSF Avoid The Changes?
The ATO’s reform summary does not mention self-managed super funds (SMSFs). Complying super funds currently receive a separate one-third CGT discount. Some commentary says SMSFs sit outside the reforms, but the ATO has not yet stated this. Trustees should watch for official ATO guidance before relying on either view.
