Australia’s proposed capital gains tax changes affecting crypto, luxury assets, and start-ups
Consensus Summary
Australia’s Treasurer Jim Chalmers is preparing to announce changes to capital gains tax (CGT) that could revert to pre-1999 rules, replacing the current 50% discount with inflation-adjusted gains. The move, expected in the upcoming budget, has raised concerns among investors in cryptocurrencies, luxury assets like Birkin bags and fine wine, and start-up founders. The global crypto market is valued at $US2.8 trillion, with up to a quarter of Australian investors holding crypto, while Bitcoin’s price has fallen from a 2025 peak of $US124,310 to $US81,000, though long-term holders still face significant gains. Experts warn the changes could discourage crypto start-ups and property investments, though Chalmers insists the budget will include incentives for start-ups and venture capital. The $500 CGT threshold remains unindexed, and the new rules may favor long-term asset holders by accounting for inflation.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Treasurer Jim Chalmers is set to unveil capital gains tax changes on budget night (May 2026) that may revert to pre-1999 rules, replacing the current 50% discount with inflation-adjusted gains
- The global crypto market is valued at an estimated $US2.8 trillion ($3.7 trillion AUD) in 2026, with up to 25% of Australian investors holding crypto assets
- Bitcoin’s price dropped from a peak of $US124,310 in late 2025 to about $US81,000 in May 2026, though an investor holding since early 2024 (when it was $US44,000) still faces an 85% capital gain
- The $500 threshold for assets subject to capital gains tax has not been indexed since the tax was introduced, according to Geraldine Magarey, Chartered Accountants ANZ group executive for policy
- Tuan Van Le, Challenger Law managing director, stated that scrapping the 50% CGT discount could reduce incentives for crypto start-ups, as employees often receive shares
- Jim Chalmers emphasized the budget will include incentives for start-ups and venture capital, calling them 'a really crucial part of the economy'
Points of Difference
Details reported by only one source:
- The article includes a placeholder text 'As , Chalmers will return to the way capital gains were taxed before changes made by the Howard government in 1999' (likely a formatting error)
- The article mentions 'Cut through the noise of federal politics with news, views and expert analysis.' as a closing line, which appears to be a standard footer
- Same as THEAGE for placeholder text and footer
Contradictions
Conflicting information between sources:
- Both sources are identical in content, so no contradictions exist between THEAGE and SMH
Source Articles
The tax change coming for Birkin bags, fancy watches and crypto
Tuesday’s budget will change the capital gains tax. While most people are focused on property and shares, the tax also applies to more exotic assets.
The tax change coming for Birkin bags, fancy watches and crypto
Tuesday’s budget will change the capital gains tax. While most people are focused on property and shares, the tax also applies to more exotic assets.