Australia plans to reduce capital gains tax relief, potentially impacting long-term digital asset holders' returns

Odaily Planet Daily News: Australian authorities plan to revise the capital gains tax system in the upcoming federal budget, and this adjustment will cover cryptocurrencies and other digital assets. Currently, the Australian Taxation Office treats most cryptocurrencies as capital gains tax assets, and individual investors who hold them for more than 12 months can enjoy a 50% reduction in taxable gains.

According to reports, the government is currently considering lowering the 50% relief rate to between 25% and 33%, or adopting an inflation-indexed method to replace the fixed relief, meaning only the actual appreciation portion above inflation will be taxed. This reform applies to stocks, exchange-traded funds, and digital currencies held outside pension accounts. Analysts point out that the new rules may reduce the after-tax returns of high-growth tokens and prompt retail investors to adjust their investment portfolios before the policy possibly takes effect on July 1, 2026. Specific details are still pending confirmation in the Treasurer's budget report.