Australia’s proposed CGT changes could discourage long-term crypto holding
SkimNews Take
The proposed CGT changes, by removing a tax incentive for long-term holding, could inadvertently shift crypto investment behavior toward shorter-term, more speculative trading.
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- Australian government will apply the new CGT rules only to crypto gains realized after July 1 2027, with new homes exempt, to discourage long‑term crypto holding.
- Jonathon Miller (Kraken GM) says the reduced benefit of long‑term holding could push investors toward shorter‑term behavior, undermining patient capital.
- Andrea Yuen (Swyftx co‑CEO) expects the tax changes to act as a catalyst for crypto allocations in retirement portfolios and self‑managed super funds, promoting structured long‑term wealth creation.
- BTC Markets reported a 69% increase in SMSF registrations year‑on‑year during the 2024‑2025 financial year, reflecting rising crypto interest for retirement savings.
- Angus Taylor pledged to oppose the reforms and repeal them if his party forms government after the 2028 federal election, while Labor must secure 76 House votes and 39 Senate votes to pass the measures.
Why it matters: Crypto investors lose the long‑term CGT discount after July 1 2027, while retirement funds gain a new incentive to allocate crypto, potentially reshaping Australian super‑annuation portfolios and affecting housing demand.
