[DigitalToday reporter Yoonseo Lee] Australia will completely overhaul its capital gains tax regime for assets including cryptocurrencies.

CoinPost, a blockchain outlet, reported on July 17 (local time) that Australia will abolish the 50 percent capital gains discount it has applied to assets held for more than 12 months. The new system will take effect on July 1, 2027.

The overhaul follows a tax amendment law enacted in 2026, and applies not only to cryptocurrencies but to a broad range of assets held by individual investors, including stocks and real estate.

Australia has so far recognised only half of capital gains as taxable when an asset was sold after being held for more than 12 months. Under the new system, the 50 percent discount for long-term holders will disappear, and cost base adjustments and a minimum 30 percent taxation approach will be introduced. This could increase investors' tax burdens compared with the current system depending on income levels and the timing of acquisition by asset.

Tax calculations and record-keeping are also expected to become more complex. In particular, when individual investors sell cryptocurrencies, stocks or real estate, they will need to distinguish more precisely by asset the cost base and the timing when unrealised gains arose.

Transitional measures have also been prepared. Unrealised gains that arose before July 1, 2027 can continue to receive the existing 50 percent discount, but gains arising after that will be subject to the new system. Investors will need to manage profits and losses on their holdings by separating them into periods before and after the transition date.

The difficulty of responding may also vary depending on how assets are held. For assets held on an exchange, it is relatively easy to confirm the market price at the transition point and transaction history, but for cryptocurrencies stored in personal wallets there is a strong possibility that investors will need separate materials to prove the valuation at the time and the acquisition cost.

As implementation approaches, there may also be moves to adjust the timing of sales of long-term holdings. Demand could increase to dispose of assets before the transition date to apply the existing discount, or to clearly record the valuation at the transition point. If sale timing is decided based only on taxes, investors could be exposed to price fluctuations and transaction costs, requiring a comprehensive judgment.

The measure does not target only cryptocurrencies, but is expected to directly affect digital asset investment strategies of individual investors in Australia. As the existing tax benefit from long-term holding disappears, investors are expected to need to manage not only sale timing but also how assets are stored, transaction records and systems to substantiate acquisition costs.