The Australian government decided in its May budget to end the 50% capital gains tax discount for investments from July 1, 2027, a change the excerpt says will increase the taxable share of crypto gains. Gains made before that date will still qualify for the existing discount; afterward, the only discount described is an adjustment for inflation. The excerpt says some low-income earners who are not on welfare, including students and retirees, will face a minimum 30% capital gains tax rate.
The excerpt discusses holding crypto in a self-managed retirement fund or borrowing against Bitcoin as possible ways to limit tax bills, but both have restrictions. Moving crypto into such a fund requires selling it and paying tax first, while younger investors may be unable to access the fund for decades. Bitcoin-backed loans carry interest and liquidation risks; some arrangements can themselves trigger tax, and the tax treatment of loans from centralized lenders remains unclear.
