Australia's CGT Changes in 2027: A Guide for Crypto Holders

By Chameleon AI · Updated 4 October 2026

If you hold crypto in Australia, you have probably seen headlines saying the 50% CGT discount is ending. The headlines are partly right. The change is real and it is already law. But the detail matters, because many people assume they lose the discount on everything they own. Under the transitional rules, that is not what the legislation does for gains that built up before the start date.

What is changing and when

The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026. It follows the 2026-27 Federal Budget announcement. For CGT events on or after 1 July 2027, the 50% CGT discount for resident individuals, trusts and partnerships is replaced by two things:

• Cost base indexation. Your cost base is adjusted for inflation using the Consumer Price Index (CPI), so only the real, inflation-adjusted gain is taxed.
• A 30% minimum tax. For resident individuals, tax on capital gains that accrue from 1 July 2027 is topped up so it is at least 30%, unless an exception applies. If your marginal rate is higher than 30%, you pay your marginal rate.

The legislation does not cover everything. Companies and complying super funds, for example, are not affected by the indexation change, and there is no indexation when working out a capital loss. The ATO is expected to publish more guidance and calculation tools.

What happens to crypto you already hold

This is the part most headlines skip. For an asset you acquired before 1 July 2027 and sell after that date, transitional rules generally treat you as if you sold it just before 1 July 2027 and bought it back straight away at its market value. The gain or loss from that deemed sale is not taxed on 1 July 2027. It is deferred until you actually dispose of the asset.

In practice this splits one overall gain into two parts:

• Gain accrued up to 30 June 2027. This part stays under the existing rules, including the 50% discount where you are eligible.
• Gain accrued from 1 July 2027. This part is treated under the new indexation and minimum tax rules.

The default market value is the value just before 1 July 2027. Taxpayers may be able to use an alternative apportionment method set by a ministerial determination. Check ATO guidance for the method that applies to you.

Why this matters for crypto holders

Crypto prices can move a lot in a short time, so many holders sit on large unrealised gains. Crypto is also easy to trade, which means disposals can happen often and sometimes without cashing out to Australian dollars. Three things make the change more relevant for crypto than for many other assets:

• Your records decide the split. To divide a gain into pre- and post-transition parts, you need reliable acquisition dates, costs and market values.
• Frequent trades matter. Each swap is a CGT event. Assets acquired after 1 July 2027 will not benefit from the transition at all.
• Timing strategies change. Under the old rules, some investors waited for a low-income year to realise gains. The 30% minimum is designed to reduce that benefit for gains accruing after the start date.

Who is affected

The indexation and minimum tax changes are aimed at Australian resident individuals, trusts and partnerships that currently use the 50% discount. A few groups are treated differently:

• Companies never had the 50% discount, and the change does not give them indexation.
• Complying super funds are not covered by the new indexation and minimum tax regime. This is one reason some investors ask about holding crypto inside an SMSF, which is a complex area that needs specialist advice.
• Non-residents and people who changed residency can face different rules for part of their holding period, so get advice if that applies to you.
• Short-term holders never got the 50% discount on assets held under 12 months, and indexation also needs a 12-month holding period, so for them the practical change is mainly the minimum tax.

The exceptions in the legislation, such as those for certain new residential property, are not relevant to most crypto holders.

Decisions to think through

There is no single right answer. The best choice depends on your income, your holding period, your other assets and your goals. These are the questions worth discussing with a registered tax agent, not recommendations:

Option 1: Sell some or all before 1 July 2027

A disposal on or before 30 June 2027 falls under the old rules, so a long-held asset can get the 50% discount. But selling creates a tax bill in the 2026-27 income year, and you give up future growth in the asset. Because the transitional rules already protect gains accrued before the start date, selling early purely to "lock in" the discount may not be needed.

Option 2: Hold and plan

If you keep the asset past 1 July 2027, the pre-transition gain is deferred and should still be eligible for the discount when you eventually sell, if you meet the holding requirements. Growth after that date is taxed under the new rules. Holding well-organised records of values at 30 June 2027 becomes important.

Option 3: Do nothing

Not deciding is also a decision. If you do nothing, you still need to keep the records that let you prove your cost base, dates and the 30 June 2027 value later on.

Step 1: Work out your cost base (and do it properly)

Your cost base is generally what you paid for the crypto in Australian dollars, plus certain costs such as exchange fees. It is the starting point for every calculation, old rules or new. Common mistakes include:

• Forgetting trading and transfer fees
• Missing purchases made on other exchanges or wallets
• Using the wrong Australian dollar value on the day of a swap
• Mixing up staking rewards (income when received) with capital gains on later disposals

If you want to run your transactions through a calculator, the Crypto Tax Tracker works in your browser with no account, supports FIFO, LIFO, HIFO and Specific ID, and costs $49 as a one-time payment. See the tools section below for what it does and does not cover.

Step 2: Keep your 30 June 2027 values

If you still hold crypto on that date, the market value just before 1 July 2027 will likely matter when you sell later, possibly years from now. A few habits that will help:

• Export your full transaction history from every exchange and wallet before the date, and keep copies
• Record the Australian dollar value of each holding at 30 June 2027 from a clear, repeatable price source
• Save a short note describing how you got each number
• Keep these records generally for at least five years after you lodge the return that uses them

A simplified example

The numbers below are invented and rounded to show the structure only. Real calculations use official CPI figures and the ATO method, so do not use this to work out your own tax.

• You bought 1 BTC for A$40,000 in 2024.
• Its market value just before 1 July 2027 is A$100,000.
• You sell it in 2029 for A$130,000.

Part A, up to 30 June 2027: the deferred gain is A$100,000 minus A$40,000, which is A$60,000. If you are eligible for the 50% discount, A$30,000 is included in your taxable income in the year of sale.

Part B, from 1 July 2027: your cost base for this part starts at A$100,000 and is indexed for CPI. If indexation lifts it to about A$105,000, your real gain for this part is about A$25,000. That amount is taxed at your marginal rate, or at least 30% if your marginal rate is lower.

The key idea: the overall gain of A$90,000 is split into two parts that follow different rules. If you want to test your own transactions with the rules that apply today, the Crypto Tax Tracker can help you organise them.

Step 3: Know which events trigger CGT

The ATO treats crypto as a CGT asset, not as currency. Each of these is generally a CGT event:

• Swapping one crypto for another. BTC to ETH counts, even if you never cash out to AUD.
• Selling crypto for Australian dollars.
• Paying for goods or services with crypto.
• Gifting crypto. The market value at the time is used.

Some receipts are treated as income instead. Staking rewards and airdrops are generally ordinary income at their market value when you receive them, and that value becomes your cost base for later disposals. Crypto kept or used mainly for personal use can be exempt in some cases, for example when its cost is A$10,000 or less. Check the ATO rules for your situation. DeFi activity, wrapped tokens and lost or stolen coins can be complex, so ask a tax agent.

Records and tools

The ATO expects records of each transaction: the date, what the asset was, the Australian dollar value, what the transaction was for and who the other party was. You can keep these in a spreadsheet, in exchange reports, in a tax software service, or in a calculator that runs on your own device.

The Crypto Tax Tracker follows the rules that apply to disposals up to 30 June 2027, including the 50% CGT discount. It does not include the new indexation and 30% minimum tax calculations that start on 1 July 2027. It imports CSV files from Coinbase and CoinSpot, plus a general CSV format. It also exports a report for your records and your tax agent. It is a calculation tool, not tax advice.

If you want help organising your thinking before you see an accountant, the 50 AI Prompts for the Australian Crypto Trader pack includes prompts for tax record preparation and risk management.

A planning checklist before 30 June 2027

1. List every wallet, exchange and account you have used, including closed ones.
2. Export full transaction histories and store them somewhere you control.
3. Check that every purchase, sale, swap, transfer and reward is recorded with a date and an Australian dollar value.
4. Note which assets you expect to still hold on 30 June 2027.
5. Record the market value of each holding at 30 June 2027 and how you got it.
6. Ask a registered tax agent how the transitional rules apply to your situation, especially if you have large gains, multiple entities or a super fund.
7. Do not make big disposals just because of headlines. Run the numbers for your own situation first.

Key dates

• 1 July to 30 June: the Australian financial year.
• 31 October: the usual deadline for individuals who lodge their own return for the previous financial year. Registered tax agents may have later lodgment dates, so ask yours.
• 30 June 2027: the last day the old rules apply to new disposals, and the valuation date for the transition.
• 1 July 2027: the new indexation and minimum tax rules start.

Dates and details can change, so confirm them on the ATO website.

Frequently asked questions

Sources and last updated

Last updated: 4 October 2026. This guide is based on the sources below. Laws and ATO guidance can change, so check the latest versions.

• Budget 2026-27 explainer: Negative gearing and capital gains tax reform (Australian Government)
• King & Wood Mallesons: CGT amendments, a blast from the past and a new minimum tax
• Corrs Chambers Westgarth: Capital gains tax and negative gearing amendments
• Nexia: Tax requirement for asset valuations as at 30 June 2027
• Australian Taxation Office: tax treatment of crypto assets (ato.gov.au)