Key points (TL;DR)

What is changing on 1 July 2027?

On 12 May 2026, as part of the 2026 to 27 Federal Budget, the Government announced reforms to negative gearing and capital gains tax. The ATO confirms these measures are now law (ATO: Reforming negative gearing and capital gains tax). From 1 July 2027 the changes will:

• replace the 50% CGT discount for resident individuals, trusts and partnerships with cost base indexation on gains that accrue on or after 1 July 2027,
• introduce a minimum 30% tax for individuals on certain net capital gains that accrue on or after 1 July 2027,
• make pre-CGT assets (bought before 20 September 1985) subject to CGT for gains accruing on or after 1 July 2027.

Crypto is a CGT asset in Australia, so these rules apply to crypto held by individuals, trusts and partnerships in the same way as shares or property. Some exemptions apply, such as new residential dwellings.

Watch: Ben Simpson on this topic

Key takeaway: Ben stresses that gains made before 1 July 2027 keep the current treatment, so there is no need to rush to sell, and he walks through a worked example of how the split calculation works.

Key takeaway: Ben connects every wallet and exchange to crypto tax software so he can see realised and unrealised gains and losses in one place, and checks each strategy with his accountant.

What happens to crypto you already own?

This is the part most people want to know first. The ATO explains that the reforms only apply to gains that accrue after 1 July 2027, with no impact until gains are realised.

• For an asset you own before 1 July 2027, the 50% CGT discount still applies to the difference between its cost base and its value immediately before 1 July 2027.
• For the gain from 1 July 2027 onwards, the asset’s value on 1 July 2027 becomes the starting point, and indexation and the minimum tax apply.
• If you buy less than 12 months before 1 July 2027 but hold for at least 12 months in total, you can apply the discount to the pre-1 July gain and indexation to the post-1 July gain.

In other words, the gains you have built up so far keep the current treatment. Ben makes the same point in the video below: there is no need to rush out and sell because of the date.

What is cost base indexation?

Cost base indexation adjusts what you paid for an asset for inflation, using the consumer price index (CPI), before the capital gain is worked out. The Budget explainer notes this is similar to the arrangements that applied between 1985 and 1999, and that the ATO will provide guidance and tools to help with the calculation.

To qualify for either the discount or indexation, you must own the asset for at least 12 months before the CGT event happens.

How does the 30% minimum tax work?

The Budget explainer states that a minimum tax rate of 30% will apply to real capital gains accruing from 1 July 2027. It does not affect people whose capital gains are already taxed at 30% or more. People who receive means-tested income support payments, such as the Age Pension or JobSeeker, are exempt from the minimum tax if they receive a payment in the financial year in which they realise the gain.

What can crypto investors do to prepare?

1. Get your records in order now. Your value on 1 July 2027 will matter for every asset you hold through that date, so complete transaction histories make the split calculation far easier.
2. Know your holding dates. The 12-month rule still decides whether the discount or indexation can apply.
3. Connect your accounts to crypto tax software so realised and unrealised gains sit in one place.
4. Speak with a registered tax agent about structures and timing before you act. Ben checks every strategy he discusses in the videos with his accountant.

For the record-keeping side, see what records you need for crypto tax in Australia, and our guide to cryptocurrency tax in Australia.

This page is general information only, not tax, legal or personal financial advice. Speak with a registered tax agent or solicitor about your own situation.

What is your next step?

If you would like a structured way to apply a written plan that accounts for tax, the Collective Shift Accelerator membership runs for 12 months and opens with 4 live cohort weeks, followed by ongoing access to research, workshops and the Live Crypto Portfolio (see our analysts’ portfolio buys and sells). It carries a 14-day guarantee. You can read member results from members, or check the company facts on our page Is Collective Shift legit?

Where this guide comes from

• Australian Taxation Office, Tax reform: reforming negative gearing and capital gains tax, and Capital gains tax guidance (accessed 31 Oct 2026)
• Australian Government, Budget 2026 to 27 Tax Explainer: negative gearing and capital gains tax
• YouTube: BIG Tax Changes for Crypto Investors In Australia. What You Need To Know, Ben Simpson, 2026-05-15
• YouTube: How To Pay Less Tax Legally On Your Crypto In Australia (My Top 5 Strategies), Ben Simpson, 2026-09-02

Collective Shift live sessions and Academy lessons are available to members. This guide is general education only and is not personal financial advice.

Last updated 31 Oct 2026. Written by Ben Simpson, Founder and CEO of Collective Shift.

General information only. Collective Shift provides research and education, not personal financial advice. We don’t manage your money or hold your crypto. Consider your own circumstances and speak with a licensed adviser and a registered tax agent before acting. Past performance is not a reliable indicator of future performance.