What happened
The ATO confirmed crypto assets are treated as CGT assets, meaning selling, gifting, spending, or swapping digital tokens creates a taxable event. The existing 50% CGT discount applies to eligible assets held over 12 months for gains accruing up to 30 June 2027. Gains from 1 July 2027 will shift to inflation indexation and a 30% minimum real capital gains tax.
Why it matters here
Many Australian crypto holders mistakenly assume tax applies only when converting crypto into Australian dollars. Crypto-to-crypto trades generate immediate taxable liabilities based on AUD market value at trade time. Understanding these rules is crucial for portfolio tax planning, especially as upcoming tax reform alters long-term capital gains calculations for holdings spanning across the 2027 threshold.
What to watch
Review transaction history ahead of tax filing deadlines and model potential liabilities before disposing of major digital asset positions.
Source
camdenprofessionals.com.au