According to Australia 50% CGT Discount for Crypto Statistics for 2026, the 50% capital gains tax discount for individuals and trusts is projected to cost the federal budget A$21.79 billion in forgone revenue in 2025–26 alone. That cost is driving a major change to how capital gains are taxed.
Under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, from 1 July 2027, the 50% discount for individuals, trusts and partnerships will be replaced with cost base indexation and a 30% minimum tax rate on capital gains. The reform has now become law rather than remaining a proposal.
The changes also apply to crypto, with no carve-out for digital assets. So whether you hold Bitcoin, Ethereum or another crypto asset in your own name, gains will be subject to the new rules from 1 July 2027. However, crypto held across the transition period will require two separate calculations, making the change more than a simple shift in the tax rate.
Key Takeaways
- The 50% CGT discount for individuals, trusts and partnerships is replaced by cost base indexation and a 30% minimum tax rate from 1 July 2027, and this change is now enacted law.
- Crypto held through the transition is split into a pre-2027 component, which can still receive the old discount, and a post-2027 component, which uses indexation instead.
- Crypto bought on or after 1 July 2027 gets no pre-transition protection at all.
- Self-managed super funds sit outside this reform entirely, creating a real gap between how the same coin is taxed personally versus through super.
How Is Capital Gains Taxation Changing from 1 July 2027?
From 1 July 2027, the 50% CGT discount will be replaced by two new mechanisms that change how individuals calculate tax on capital gains. According to the Australian Government’s Budget 2026–27 tax explainer, one adjusts your cost base for inflation, while the other sets a floor under how little tax you can pay on a gain, and together they reshape the maths behind every crypto disposal.
The 50% Discount Is Replaced With Cost Base Indexation
Instead of simply reducing a capital gain by 50%, the new rules increase your original cost base based on inflation during the period you held the asset. You then pay tax on the gain above that adjusted cost base.
For crypto assets that have grown significantly, indexation may reduce the taxable gain by less than the previous 50% discount. This means a larger portion of a strong crypto gain could remain taxable under the new system.
A 30% Minimum Tax Rate Applies to the Gain
After the cost base is adjusted for inflation, a 30% minimum tax rate will apply to the resulting capital gain. This means the tax payable on the gain cannot fall below 30%, regardless of your usual marginal tax rate.
The change will have a greater impact on investors whose marginal tax rate is below 30%. Someone who would otherwise pay tax at 16% or 19% could therefore face a higher rate on the indexed portion of their crypto gain, unless an exemption applies.
How Crypto Held Through the Transition Gets Taxed?
Crypto you already own doesn’t get revalued or taxed on 1 July 2027 itself. Instead, the Australian Taxation Office (ATO’s) reform guidance treats the crypto as though it were sold immediately before that date and bought back immediately after, splitting one holding into two components that only get calculated when you actually dispose of it later.
The value of your crypto immediately before 1 July 2027 becomes the new cost base for the second component, and you can support that figure either with a market valuation or an ATO-provided apportionment formula. Here’s how the split plays out depending on when you bought and sold:
Situation | What Happens to the Gain? | Does the 12-Month Rule Still Matter? |
Bought and sold before 1 July 2027 | Taxed entirely under the current rules, including the 50% discount if held 12+ months | Yes, under the existing discount rules |
Held continuously through 30 June 2027, then sold later | Split into a pre-2027 component (old discount) and a post-2027 component (indexation) | Yes, both components depend on 12+ months from the original purchase date |
Bought on or after 1 July 2027, sold within 12 months | No preserved pre-2027 gain; taxed in full at marginal rates | No, neither the discount nor indexation applies |
Bought on or after 1 July 2027, sold after 12+ months | No preserved pre-2027 gain; the whole gain uses indexation | Yes, for indexation eligibility only |
What Happens to Crypto You Buy After 1 July 2027?
New purchases made from 1 July 2027 onward don’t carry any of the transitional protection described above. There’s no pre-2027 component to preserve, because the asset simply didn’t exist in your portfolio before the cut-off, so the entire gain runs through the new system from the day you buy it. From there, the 12-month rule still decides one thing and one thing only:
- Sold within 12 months: The full nominal gain is taxed at your marginal rate, with no discount and no inflation adjustment available at all
- Held for 12 months or more: Indexation applies to the whole gain, though the 30% minimum tax can still add to your bill if your other income sits below the relevant threshold.
When Does the 30% Minimum Tax Actually Apply?
The 30% floor isn’t a blanket rule that hits every crypto gain earned after 1 July 2027, it’s a targeted top-up that only activates in specific circumstances. Understanding when it bites, and when it adds nothing at all, matters more than the headline rate itself.
The Income Threshold That Triggers the Top-Up
It only adds extra tax when your taxable income excluding the gain being tested sits below roughly A$45,000, because standard marginal rates already exceed 30% once income passes that point. For most working investors already on the 30% bracket or higher, the rule simply doesn’t change the final tax figure.
Who Is Exempt From the Minimum Tax?
Recipients of the following listed government support payments are exempt from the minimum tax entirely for any year in which they receive one of them:
- Age Pension
- JobSeeker
- Youth Allowance
What Records Will You Need For Capital Gains Tax Indexation?
The transition mechanism only works if you can prove what happened at each stage of ownership, and that burden sits with you, not the ATO. Gaps in your records won’t just complicate your 2027–28 return, they can cost you access to the discounted or indexed treatment you’re otherwise entitled to.
Acquisition Records
Keep your original acquisition date, quantity and Australian-dollar cost base for every purchase:
- Date of acquisition
- Quantity acquired
- Australian-dollar cost base at the time of purchase
Continuous Holding Evidence
You’ll need proof that the asset was held without interruption through the transition date:
- Wallet or exchange history showing unbroken ownership through 30 June 2027
Transition Value Documentation
Your post-2027 cost base depends on being able to support this figure if it’s ever reviewed:
- A market valuation or apportionment record supporting your crypto’s value immediately before 1 July 2027
Disposal Records
Every later sale or swap needs full disposal-level detail, and where you’ve bought the same crypto on multiple dates, you’ll also need records identifying exactly which units were sold:
- Date of disposal
- Proceeds received
- Fees incurred
- Counterparty involved
- Identification of the specific units disposed of, where multiple purchase dates exist
How Can KoinX Help You Prepare for the 2027 Capital Gains Tax Changes?
Tracking two separate gain calculations on the same holding is exactly the kind of manual reconciliation that gets things wrong when it’s done by hand, and KoinX is built to carry that load instead. Connect your exchanges and wallets once, and your acquisition history stays intact right through the 2027 transition and beyond.
Full Acquisition and Cost Base History
KoinX preserves the original purchase date, quantity and Australian-dollar cost base for every transaction, which is exactly the record the transition rules require you to produce when you eventually dispose of crypto you held across 1 July 2027.
Complete Australian Taxation Office Tax Report
This report applies ATO rules directly to your data, covering CGT discounts, income and portfolio balances in one document, so pre- and post-transition components stay traceable back to the same underlying transactions.
Buy-Sell Report for Transition Reconciliation
Before you rely on any transition valuation, this report lets you review every buy, sell and swap in one place, which makes it far easier to catch a missing transaction before it undermines your 30 June 2027 cost base figure.
Organise your transaction history before the transition arrives. Get started with KoinX and have your pre- and post-2027 split calculation ready the moment you need it.
Conclusion
From 1 July 2027, the 50% CGT discount that Australian crypto investors have relied on for over two decades is replaced by cost base indexation and a 30% minimum tax, and crypto held across that date gets split into two separate calculations rather than one simple figure. New purchases made after the cut-off carry no transitional protection at all, while self-managed super funds remain outside the reform entirely.
None of this is retroactive to gains already locked in, but it does raise the recordkeeping bar for every crypto holder in the country. Start tracking your acquisition dates and cost base now with KoinX, so your pre- and post-transition figures are ready well before your first return under the new rules is due.
Frequently Asked Questions
Do Crypto-to-Crypto Swaps Still Count as a Taxable Disposal?
Yes. Swapping one crypto asset for another remains a CGT event under both the current and the new rules. A swap that happens before 1 July 2027 is taxed entirely under the existing system, while one after that date determines which side of the transition split your gain falls into.
Does the 2027 Reform Apply to Crypto Held in a Self-Managed Super Fund?
No. Superannuation funds, including SMSFs, sit outside this reform and keep their existing 33.33% discount on assets held 12 months or more. This creates a genuine gap where identical crypto can be taxed differently depending on whether it’s held personally or through super.
Is This Reform Still Just a Budget Proposal?
No. The changes were announced in the 2026–27 Federal Budget but have since passed as law through the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. They take effect from 1 July 2027 and are no longer subject to further parliamentary approval.
Will I Pay Extra Tax on Crypto Gains I've Already Made?
No. Gains that accrued before 1 July 2027 aren’t retroactively taxed under the new rules. The transition mechanism only applies indexation and the 30% minimum tax to growth that occurs from that date forward.
Do I Need to Do Anything Before 1 July 2027?
There’s no action required by that date itself, but establishing a clear, defensible record of your crypto’s value immediately before the transition will make your eventual split calculation far easier to support if the ATO ever reviews it.
