Australia’s new CGT treatment and how it affects bitcoiners plus one benefit that NOBODY is talking about! (yet)

Hi Bitcoiners.

I was the guy who wrote the long post almost a month ago about the upcoming tax changes when everyone still thought they were only applicable to realestate.

I just wanted to run you all through what the official changes are and how they will effect us.
I've also found something hidden away in the budget papers that early Bitcoiners are going to like a lot…

So… Here we are… The Budget's been handed down and it's not great but it's also not as bad as some had thought.

Grandfathering:
Current Bitcoiners will have their 50% capital gains tax disscount PARTIALLY grandfathered.
There will be a "Snapshot" taken on July 1 2027 and let's hope there's some big moves to the upside between now and then because that snapshot is going to be VERY important for us.

We'll be able to use that price at ANY POINT IN THE FUTURE and only be taxed on HALF of it with the benefit of our 50% discount.

Now here's the thing no body's talking about and OG Bitcoiners with low cost basis will LOVE THIS!

We'll be allowed to RESET our cost base to that July 1st 2027 snap shot price.

Not only will our 50% CGT discount be grandfathered up to that point but we'll be able to take our cost base (which in my case is almost ZERO) and make it MUCH higher.

With this higher cost base, We'll pay much less tax than originally thought on gains made after July 1 2027 because of three reasons.

1. Our cost base is higher and gains are only calculated on money made ABOVE that amount
2. We'll be able to index the NEW cost base with CPI further reducing tax on our post 2027 gains.
3. If the price of bitcoin goes DOWN after July 1 2027, We'll be able to book that as a tax loss, We'll even be able to deduct that LOSS off of the grandfathered pre July 1 2027 GAIN!

Please keep in mind that any of the gains made under the new system will have a MINIMUM CGT bill of 30% but the gains from the grandfathered portion won't…

Look guys, Nothing in the new tax system makes things better for us than we had it before but we're largely protected and OG bitcoiners with zero(ish) cost basis like myself will probably be pretty happy with the cost base reset. There are a number of ways to make it work for you!

As for the "younger generation" who this budget was designed to uplift? Well… You haven't yet had a chance to delve into Bitcoin (or any asset for that matter) and you guys are screwed…

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Source:

The 50 per cent CGT discount will apply to the difference between the asset’s cost base and its value at 1 July 2027. Indexation and the minimum tax will be used to calculate the CGT on gains accruing from 1 July 2027 (using the asset’s value at 1 July 2027 as the asset’s cost base).”

-Budget Papers