Australian Bitcoin Holders Weigh Options to Reduce 2027 Capital Gains Tax Impact

Australian Bitcoin holders are considering ways to limit the effect of planned capital gains tax changes that will take effect on July 1, 2027. According to Cointelegraph, the Australian government plans to scrap the 50% capital gains discount for investments, meaning crypto gains will generally be taxed at an investor’s full income tax rate, with only an inflation adjustment available. The change follows a system in place since 1999, under which asset owners paid tax on half their capital gains. The article says rates could reach 30% for income and gains between A$45,000 and A$135,000, 37% on the portion between A$135,000 and A$190,000, and 47% above that. Low-income earners who are not on welfare would face a minimum 30% rate. Swyftx CEO Andrea Yuen said inflation indexation is more beneficial for slower-growing assets than for cryptocurrency. Stockspot analyst Chris Brycki also said crypto could be among the least advantaged asset classes because much of its return comes from capital growth. Options discussed include recording portfolio values on July 1, 2027, when gains accrued before that date would remain subject to the existing discount, and voting for parties that have pledged to reverse the changes. The Coalition and One Nation have made that commitment, though the governing Australian Labor Party holds 94 of 150 House of Representatives seats. Another possibility is holding crypto through a self-managed superannuation fund. Collective Shift founder Ben Simpson said some of his high-net-worth clients use SMSFs, but investors generally cannot access those funds until retirement. Annual costs, audits and compliance requirements may make the structure unsuitable for smaller balances. Crypto holders may also borrow against Bitcoin rather than sell it, but loans can carry high interest, short repayment periods and liquidation risks if prices fall. Tax treatment may vary: Crypto Tax Australia director Adrian Forza said some decentralized finance transactions can trigger capital gains tax, while the Australian Taxation Office has not clarified the treatment of loans from some centralized lenders. Simpson cautioned that borrowing is a leveraged strategy and may suit only sophisticated investors. The article also notes that investors can consider other options, including establishing a company to trade crypto.