Australia plans to reduce the capital gains tax exemption threshold, which may impact the long-term gains of digital asset holders.

May 12 News, Australian authorities plan to revise the capital gains tax system in the upcoming federal budget, which will cover cryptocurrencies and other digital assets. Currently, the Australian Taxation Office considers most cryptocurrencies as capital gains tax assets, with individual investors holding for over 12 months eligible for a 50% taxable income reduction.
According to market reports, the government is currently considering lowering the 50% reduction to between 25% and 33%, or replacing the fixed reduction with an inflation indexing method, which would tax only the actual appreciation above inflation. This reform applies to digital currencies outside of stocks, exchange-traded funds, and pension accounts. Analysts suggest that the new rules could reduce after-tax returns for high-growth tokens and prompt retail investors to adjust their portfolios before the policy potentially takes effect on July 1, 2026. The specific details are still pending confirmation in the finance minister’s budget report.