Australia's 47% Crypto Tax: When Leaving Could Reduce Liability

(MENAFN- Crypto Breaking) Australia is moving to sharply increase the tax burden on long-term crypto gains from July next year, a change that has already pushed some investors to rethink their personal tax strategies. Part two of Cointelegraph 's special series explores options ranging from relocating abroad to running crypto through a company-while also challenging the idea that investors can simply replace crypto exposure with exchange-traded funds (ETFs) to reduce capital gains tax (CGT).

The shift matters because the top rate on real, long-term crypto gains is set to rise to 47% (after accounting for inflation's impact on cost bases), effectively ending the previous structure that benefited many long-term holders. For younger investors in particular, strategies that rely on years-long lockups (such as superannuation vehicles) may not fit their timelines or risk preferences.

Key takeaways

From July next year, long-term crypto gains in Australia face a higher top CGT rate, reaching 47% on real gains after inflation adjustments. Some advisers say a small number of Australians have already emigrated or are considering“tax exile” routes to reach jurisdictions with 0% long-term CGT. Setting up a company may reduce the tax rate applied to each crypto sale to the corporate level, but withdrawals can trigger additional personal tax consequences. Switching from crypto to ETFs is not presented as a simple workaround for the new regime, since the post-change discount essentially reflects inflation-adjusted gains.

“Tax exile” becomes a more active strategy

The most extreme mitigation option discussed is leaving Australia to live in a country with 0% capital gains tax on long-term crypto gains. Cointelegraph notes that the changes have already prompted high-profile interest in relocation, including a reference to Fred Schebesta, founder of Finder, who has been reported as moving to Singapore to avoid upcoming Australian tax changes.

That pressure has been echoed by industry participants. Ben Simpson, founder of crypto advisory service Collective Shift, says some clients have already made the decision to leave rather than face the higher future tax take. Meanwhile, Andrea Yuen, CEO of Sywftx, points to her long experience living in Singapore and the appeal of avoiding capital gains tax there-but she also cautions against uprooting life solely for tax outcomes.

Simpson adds a practical constraint:“You really have to cut pretty much all ties to Australia.” He argues that if someone wants to pursue a relocation-based approach, they need to be genuinely prepared to sever connections-otherwise the tax planning may not work as intended. The article also highlights the risk profile of“exiting” residency. As an example of how relocation can collide with tax enforcement, it references the case of“Bitcoin Jesus” Roger Ver, who gave up U.S. residency in 2014, later facing legal action related to reporting and exit-related taxes.

Forza, director of Crypto Tax Australia, similarly warns that Australians who leave may face an exit tax event. According to him, if someone is sitting on substantial unrealized gains, the tax system may effectively“catch you when you leave,” which could require selling a meaningful portion of holdings to satisfy obligations. He also notes a timing choice: taxpayers can potentially pay Australian taxes later, but on the full value of the gain after the asset is sold. The implication for investors is straightforward-if prices are expected to rise, paying at exit could reduce exposure to a larger future tax base.

Company structures: lower tax on trades, but withdrawals change the math

For investors who do not want-or cannot access-the time horizons required by certain long-term lockup strategies, the article outlines a corporate approach. Simpson says he trades and holds crypto through a personal company specifically to benefit from the 25% company tax rate, rather than waiting for the higher personal CGT outcome.

However, the piece stresses that company structures are not automatically“tax free.” It describes the administrative burden of operating a single-person company, including registering with ASIC, preparing annual financial statements and/or tax returns, and handling payroll and superannuation logistics if the investor pays themselves an income. Funds can also be accessed via dividends at needed times.

The critical trade-off is that taking money out of a company can require paying the difference between the company tax rate and the investor's personal tax rate. Simpson frames the advantage as a timing and rate benefit on each taxable sale: when crypto trades occur inside the company, the tax applied to each realization may be capped at the corporate rate. Over repeated trading cycles, that could build into meaningful savings compared with liquidating positions directly under higher personal CGT.

At the same time, Forza's comments indicate that if trading activity is limited, the structure may not be as efficient-for example, he suggests that taxation could rise to around 30% in certain circumstances. The article also ties the approach to income level: Forza argues the benefits are generally stronger for higher earners, noting examples of income thresholds in discussions about whether the company route is worthwhile.

Finally, the article underlines a limitation: if someone's plan is simply to hold Bitcoin and make few or no trades, the corporate setup may deliver fewer advantages relative to the effort and costs involved.

Why abandoning crypto for ETFs may not solve the CGT problem

The series also addresses an intuitive idea: if crypto becomes less tax efficient, why not rotate into assets that can receive stronger CGT discounts-such as ETFs or long-term holdings of dividend stocks and index funds?

According to the article, the answer is not as simple as it appears. It explains that the prior 50% CGT discount has been replaced by an indexation discount, which accounts for inflation's effect on the original purchase price. In other words, the new“discount” largely measures the investor's real gain after inflation rather than providing an additional benefit that can be exploited by simply changing asset classes.

Simpson's view is that crypto, while hit by the changes, still offers an attractive risk-reward profile compared with ETF-based exposure-particularly if an investor's strategy is focused on Bitcoin rather than higher-volatility altcoins. The article's historical framing suggests that even with higher taxes, long-term Bitcoin returns may remain favorable relative to ETF investors, while alternative coins can produce outcomes that range from strong gains to substantial losses.

To illustrate the real-world investor psychology behind the tax discussion, the article includes a personal example from Simpson: he encouraged his younger sister to invest in Bitcoin two years ago instead of keeping money in a savings account. He argues her portfolio gains helped her move closer to purchasing a home, and he concludes that tax considerations are often not the dominant factor for most people-at least when evaluating the opportunities that crypto can present.

Yuen reinforces the idea that crypto is unusual among asset classes in that it can deliver double-digit returns over relatively short periods-though the piece does not claim that this will be the outcome for every investor. Her position, as presented, is that even after the new taxes, investors who achieve those kinds of returns can still outperform alternatives.

What to watch next

As the July CGT changes approach, readers should focus less on any single workaround and more on whether their personal facts-residency status, income level, trading frequency, and plans for liquidity-would make each strategy workable under the new rules. The article's recurring message is that tax outcomes can shift quickly, but personal circumstances and compliance requirements are often the deciding factor.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links.

MENAFN09112026008006017065ID1111937063