Australian tax reform could triple burden for long-term investors

Concerns are growing that the Australian government's proposed capital gains tax reform could weaken incentives for long-term investment, Cointelegraph reported. The reform, included in the ruling Labor Party's 2027 fiscal year budget, would abolish the 50% tax discount for assets held over 12 months and introduce a minimum 30% rate. Robin Singh, CEO of local crypto tax calculation platform Koinly, explained that the new system only allows deductions for inflation. He argued this offers minimal tax savings for high-growth assets like crypto and could increase the tax burden for low-income investors by up to threefold. Meanwhile, Jonathon Miller, Managing Director of Kraken Australia, pointed out that reducing long-term holding benefits would inevitably lead to more short-term trading in a market that operates 24 hours a day.