Should you leave Australia to avoid paying 47% tax on crypto gains?
Some Australian crypto investors are moving overseas to avoid the huge CGT increase from July 2027. But there are also less drastic ways you can pay less tax.
As capital gains taxes on crypto in Australia soar to 47% from next July, some investors are contemplating leaving the country to avoid the hefty tax bill. However, there are alternative strategies to reduce the impact of the tax increase. In the first part of a special report on navigating Australia's impending tax hike on crypto, we explore how to mitigate the tax burden.
While a self-managed super fund (SMSF) provides the most significant tax advantages, it is only feasible for older investors or those willing to lock up their crypto for decades. Younger investors may find that moving overseas could reduce future tax bills to 0%, but less drastic measures are also available. Some top crypto hubs, such as Singapore, Portugal, Malta, UAE, and Hong Kong, offer 0% capital gains taxes on long-term gains, attracting wealthy investors.
Ben Simpson, founder of crypto advisory service Collective Shift, has already had several of his members move abroad to escape the high tax. However, Andrea Yuen, CEO of Sywftx, cautions that relocating solely for tax reasons may not be the best strategy. Experts advise against leaving solely based on the anticipated tax hike, suggesting that individuals should consider other factors before making such a drastic decision.
While running a single-person company offers a 25% company tax rate, the hassle and costs associated with maintaining the company structure may outweigh the benefits if the investor does not engage in frequent trading. For those earning high incomes, setting up a company could still provide a significant tax advantage compared to the impending 47% capital gains tax.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
